LG Electronics and Magna International, a Canadian automotive parts manufacturer, have agreed to set up a joint venture that will make electric car gears. Magna International is a top six ranked automotive parts manufacturer in the world based on sales and possesses different autonomous driving technologies and platforms.
According to Bloomberg on Wednesday, their joint venture will be worth one billion dollars. LG Electronics and Magna International will own 51% and 49% respectively of the new company.
It is reported that their new company will manufacture different parts such as electric motors and inverters in Incheon and Nanjing.
There is also a possibility that electric vehicle parts manufactured by their new company will be supplied to Apple’s next-generation electric vehicle. It is reported that Apple will release its autonomous electric vehicle in 2024. In the past, Apple had discussions with Magna International regarding working together for its next-generation autonomous vehicle.
This investment will be LG Electronics’ second biggest investment in auto business with its $905 million (1 trillion KRW) investment in an Austrian auto light maker ZKW back in 2018 being its biggest investment.
Staff Reporter Park, Sora | srpark@etnews.com