Two of the world’s leading innovative companies – South Korean LG Electronics and Magna International – have signed a transaction agreement to set-up a new joint venture company, which will be called LG Magna e-Powertrain. The new company will be headquartered in Incheon, South Korea.
The new entity will look at unifying Magna’s strength in electric powertrain systems and automotive manufacturing with LG’s expertise in e-motors and inverters. LG Magna e-Powertrain will manufacture e-motors, inverters and on-board chargers and, for certain automakers, related e-drive systems, said the company.
Further, the new company will develop powertrain components that offer automakers a scalable portfolio, from complete solutions enabling electrification and functionality to integrating intelligent operating software and controls in new e-drive systems.
“The design, engineering and manufacturing synergies created by LG Magna e-Powertrain is expected to enable both companies to quickly react to market trends and capitalise on the growing global shift toward vehicle electrification,” stated a released issued by the company.
Building a strong core team
The new company will be led by Cheong Won-suk as its CEO and Javier Perez as its COO. Won-suk is a 20-year LG veteran, and had spent nearly a decade with Daewoo Motors R&D before LG. Perez has been with Magna since 2016 and will be responsible for overseeing the day-to-day operations of the JV. Of his overall 25 years of experience, Perez has been based in Asia for 18 years.
“Partnering with Magna enables LG to scale-up its global production, provide additional business opportunities and offer synergies in procurement and technological innovation,” said Cheong. He said the integrated and collaborative approach is expected to deliver quickly for customers and capitalise on the rapid growth of the worldwide electric powertrain market.
Perez meanwhile said the market for e-motors, inverters and electric drive systems is expected to have significant growth between now and 2030. “Leveraging existing technologies, engineering capabilities and global footprints, LG Magna e-Powertrain seeks to enable advancements that help automakers achieve some of the biggest challenges ahead in electrifying their full vehicle line-ups,” he said.
Overall, LG Magna e-Powertrain plans to employ over 1,000 employees in the United States, South Korea and China.