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| From second left to right are LG Magna e-Powertrain CEO Cheong Won-suk, LG Electronics' vehicle component solutions division President Eun Seok-hyun, LG Electronics CEO Cho Joo-wan, Magna Powertrain President Tom Rucker and GM Vice President Jeffrey Morrison, during a groundbreaking ceremony of LG Magna e-Powertrain's new factory in Ramos Arizpe, Mexico, April 19. Courtesy of LG Electronics |
By Baek Byung-yeul
LG Magna e-Powertrain, a joint venture between LG Electronics and Canadian car parts maker Magna International, will build an electric vehicle (EV) parts-manufacturing plant in Mexico to supply components to U.S. carmaker GM, LG said, Wednesday.
The EV component-making company had a groundbreaking ceremony in Ramos Arizpe for the 260,000-square-meter plant on April 19 (local time). LG Magna e-Powertrain said the plant, scheduled to be completed in 2023, is its first production facility in North America and third overall following its Incheon factory in Korea and Nanjing factory in China.
At the factory, the company will produce key EV components such as drive motors and inverters to be installed in GM's next-generation EVs.
The company elaborated that the new plant will be established in central Mexico, considering its accessibility to its customers' production bases and synergy with Magna. "The facility is located close to where part manufacturers' factories and carmakers' factories including GM are situated, and Magna Powertrain's factory is also located," the company said.
With the new plant's supply chain management advantages, LG Magna e-Powertrain plans to strengthen its EV components business in the North American market.
LG and Magna launched the joint venture last July in a bid to capitalize on the rapidly growing EV parts market.
"The establishment of the new plant will serve as an opportunity for LG Magna e-Powertrain to become a key partner for EV parts in the North American automotive industry," said Cheong Won-suk, CEO of LG Magna e-Powertrain.
