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What is the latest progress after the establishment of a joint venture between LG Electronics and Magna International (hereinafter referred to as "Magna"), the two giants of battery and parts? Magna recently announced that LG Magna Electric Powertrain,500, a joint venture between the two companies, has officially broken ground on April 19 at its new plant in Mexico. The plant, which is scheduled to open in 2023, will produce inverters, motors and on-board chargers, which will be used to support General Motors' electric vehicles.
LG Magna Electric Powertrain breaks ground at its Plant in Mexico
Located in Ramos Arispe, Mexico, the plant covers an area of approximately 24,000 square meters and is the first plant in North America for LG Magna Electric Powertrain and is expected to employ approximately 400 people.
After the official start of production, the Mexican plant will mainly supply GM. GM plans to build a strong, scalable, and sustainable electric vehicle supply chain in North America, and LG Magna Electric Powertrain's Mexico plant will be an important part of GM's North American electric vehicle supply chain.
At the end of 2020, the cooperation between LG Electronics and Magna was announced for the first time, and in July 2021, the joint venture between the two companies, LG Magna Electric Powertrain, officially launched operations in Incheon, South Korea. The joint venture combines LG's expertise in the fields of motors, inverters and in-vehicle chargers, as well as Magna's strengths in the field of electric powertrains and complete vehicle manufacturing.
LG and Magna joint venture office building in Incheon, South Korea
This also means that in the electric vehicle market, Magna and LG Electronics have chosen to "take their own strengths" to gain a larger market share.