LG Electronics JV breaks ground on Mexico EV parts plant

Tech

Published: 20 Apr. 2022, 18:41 Updated: 21 Apr. 2022, 19:25

LG Electronics JV breaks ground on Mexico EV parts plant

Executives from LG Magna e-Powertrain, LG Electronics and Magna Powertrain attend a ground-breaking ceremony on April 19. [LG ELECTRONICS]

LG Magna e-Powertrain, a joint venture between LG Electronics and Magna International, has broken ground on a $100 million electric vehicle (EV) component plant in Mexico.

Scheduled to be up and running in 2023, the plant is located in the city of Ramos Arizpe, Coahuila. It will produce inverters, motors and on-board chargers to support production at General Motors factories.

The 260,000-square-foot (24,150-square-meter) plant will be LG Magna e-Powertrain's first production base in North America and is expected to create around 400 new jobs, according to a statement released by the two companies.

The location is near the production lines of General Motors and Magna Powertrain, a subsidiary of Magna International.

The building of the new facility comes after GM committed $1 billion last year to adding assembly lines for EVs at its Ramos Arizpe complex.

The joint venture will use the new Mexican plant as a central production point for the North American market, where demand for EVs will likely continue to rise with the U.S. government's push to increase the sale of EVs.

President Joe Biden signed an executive order last year setting a target that 50 percent of all new vehicle sales by 2030 will be so-called clean vehicles, primarily electric cars and trucks.

A ground-breaking ceremony was held on April 19, bringing together executives of LG Electronics, Magna Powertrain and General Motors and government officials.

"The JV's ongoing success will enable us to better support our customers with best-in-class components for the next generation of electric vehicles, and help us to expand our presence in the fast-growing global EV market," said Cheong Won-suk, chief executive officer of LG Magna e-Powertrain.

Executives from Magna and LG Electronics echoed the expectations.

"The building of a new facility is a true testament to the strength of this collaboration and commitment in delivering innovative solutions to customers to meet their challenges. It also reinforces our active participation in the electrification transformation whether by eDrive sub systems or full systems," said Tom Rucker, president of Magna Powertrain in the statement.

LG Magna e-Powertrain was established last July after the two parties agreed in 2020 to form a $1 billion venture, with LG Electronics holding 51 percent and Magna International the rest.

"Strengthening our JV's ability to develop and produce advanced EV sub-assemblies, the Ramos site represents one of the key pillars of LG's long-term strategy to become the auto industry's go-to innovation partner," said Eun Seok-hyun, president of vehicle component solutions at LG Electronics.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]