LG Magna e-Powertrain to build first European plant in Hungary

Industry

Published: 04 Sep. 2023, 17:30 Updated: 04 Sep. 2023, 18:39

LG Magna e-Powertrain to build first European plant in Hungary

LG Electronics CEO William Cho speaks during the press conference for the IAA Mobility 2023 on Monday in Munich, Germany. [LG ELECTRONICS]

LG Magna e-Powertrain is building its first European manufacturing facilities in Hungary as a response to the growing need for electric vehicles in the region.

The joint venture between Korea’s LG Electronics and Canada’s Magna International, which was established in 2021, announced Monday it would build an EV components factory in Miskolc, in the northeastern city of Hungary, adjacent to global carmakers' manufacturing facilities.

It is the joint venture's fourth manufacturing base, after Korea's Incheon, China's Nanjing and Mexico's Ramos Arizpe.

The Hungary factory will be built by 2025 with a target of starting production in 2026, taking up 26,000-square-meter (279,861-square-feet) of floor space.

It will be responsible for manufacturing motors, inverters and convertors for EVs, hiring some 200 employees.

“The Europe factory shows LG Electronics’ determination to provide innovative EV powertrain solutions while responding to demand from European carmakers,” said Eun Seok-hyun, head of LG Electronics’ vehicle component solutions.

The announcement was made during LG Electronics' press conference held on Monday for the IAA 2023 motor show, kicking off in the German city of Munich on Tuesday.

LG Electronics is sponsoring the auto show.

The Korean electronics company reiterated its vision to become a leading automotive components company at the press conference.

"We strongly believe future mobility should focus on the mission to deliver another level of customer experience," said William Cho, who took to the stage for the press conference.

"LG is more than committed to delivering our mission of innovative vehicle solutions. We are specialized in it and it is part of our DNA to realize our earnest promise of [the company's renewed slogan] 'Life's Good'."

Cho unveiled the company's redefinition of vehicles as "personalized digital cave" and pledged to offer three values — transformable, exportable and ‘relaxable’ — to achieve that.

LG Electronics envisioned a "transformable" vehicle by deploying its rollable, flexible and transparent display technology so the passengers can enjoy various types of contents in various forms inside their vehicles.

It also suggested an “explorable” in-car experience by deploying its extended reality technology onto the windows so the passengers can explore various content while on the road.

The “relaxable” experience will be realized through LG Electronics’ digital health technology such as turning on the seats’ massage functions while being consulted by the AI-powered consultants.

LG Electronics’ initiatives in the automotive industry will also include an EV charging system.

It said it would elevate customers' charging experience by jumping in the segment on the back of its near 70 years’ experience in manufacturing, controlling quality and managing the after-sales services of home appliances.

As part of the effort, LG Electronics acquired HiEV Charger, an EV charger technology company, last year, and started producing the products from early this year.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]