LG spins off EV part joint venture with Magna International
LG Magna e-Powertrain, an electric vehicle (EV) parts supplier joint venture between LG Electronics and Magna International, was officially launched Thursday.
LG Electronics on Thursday morning held a board meeting and approved to spin off the business to set up the new company. Canadian auto parts maker Magna International will acquire a 49 percent stake for $453 million next week, leaving LG Electronics with the remaining 51 percent.
The company will produce key components for EV powertrain systems, such as motors, inverters and onboard chargers, according to LG Electronics. A powertrain is the combined set of components that generate the power required to move an EV.
Cheong Won-suk was named as the company’s first CEO. Cheong, who previously worked at Daewoo Motors, has had roles at LG Corp.’s synergy team and at LG CNS. He has been working at the vehicle component solutions division of LG Electronics since 2018.
LG Magna e-Powertrain will be headquartered in Incheon with about 1,000 workers. Some employees of the LG Electronics mobile communication division, which will be shut down from July 31, will move to the new company.
LG Magna e-Powertrain is expected to generate some 500 billion won ($442,000) of revenue in the second half, and about 1 trillion won in 2023, according to KB Securities.
BY SARAH CHEA [firstname.lastname@example.org]