In order to manufacture electric vehicle components, LG Electronics will form a joint venture with Magna

LG Electronics and Canadian automotive parts maker Magna have announced intentions to invest US$1 billion in the development of a joint venture to produce parts for electric vehicles. In a paper, LG Electronics said Magna will have a 49 percent interest in the joint venture, while the remaining 51 percent of the joint venture will be owned by LG Electronics.

The company stated that the joint venture will be tentatively named LG Magna e-Powertrain and will manufacture electric motors, inverters, on-board chargers and electronic drive systems at its Incheon, South Korea and Nanjing, China factories.

It is expected that the transaction will be completed in July 2021, but a number of conditions, including the approval of LG shareholders and all necessary regulatory approvals, must be met.

In addition to smart phones, LG Electronics is South Korea’s second-largest electronics company, which is also involved in a range of industries, including white goods, household appliances, and so on.

The company is claimed to be in a leading role in terms of 4G LTE and 5G patents. From 2012 to 2016, the firm secured the most LTE and LTE-Advanced patents in the US for five straight years, according to data from a US patent consultancy company.

Magna is a supplier of auto parts with expertise in vehicle engineering and OEM production. Its product strengths include the manufacture of body, frame, exterior, seats, powertrain, electronics, autonomous driving assistance, mirroring, locking and car Top system has multi-field capabilities in electronic and digital engineering. The business is a Tesla dealer and provides Tesla with interior doors.