LG-Magna JV to build $100m EV parts factory for GM in Mexico

LG Magna e-Powertrain, a joint venture between LG Electronics and Magna International, will build a $100 million plant that manufactures General Motors electric vehicle components, scheduled for completion in 2023, the company announced Wednesday.

The 25,000 square-meter factory will produce inverters, motors and on-board chargers to support North America-focused EV production of GM, as GM was tapped to become a foundational customer for the new facility.

The plant will be located in Ramos Arizpe, in northeastern Mexico. It will be the first production base of LG Magna e-Powertrain in North America and will create some 400 jobs there.

The plant construction is in line with GM’s plan in April 2021 to invest $1 billion in the Ramos Arizpe Manufacturing Complex. GM aims to start producing EVs there in 2023, mainly targeting the United States, which has set a target of making at least half its new US vehicles electric by 2030.

LG Electronics said in a statement the JV took into account accessibility to clients’ manufacturing bases and synergy with Magna in selecting Ramos Arizpe as its new location.

“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 the LG Vehicle component Solutions Company.

LG Magna e-Powertrain is a 51:49 joint venture founded in July 2021, as a result of a EV powertrain unit splitoff from LG Electronics.

LG Magna e-Powertrain is considered one of the major pillars of LG Electronics’ car component business, along with Austria-based automotive lighting systems subsidiary ZKW and LG Electronics’ own vehicle component unit.

The Mexico plant will be LG Magna e-Powertrain’s third to operate, according to the company. It has production bases in Incheon, South Korea and Nanjing, China.

(consnow@heraldcorp.com)