LG Electronics and Magna have announced a joint venture to manufacture e-motors, inverters and on board chargers as well as, for certain automakers, related e-drive systems.

The new company, tentatively called LG Magna e-Powertrain, marries Magna’s work in electric powertrain systems and automotive manufacturing, with LG’s experience in component development for e-motors and inverters.

The JV enables the two companies to continue to grow their electric powertrain product offerings by leveraging existing technologies, engineering capabilities and global footprints.

The market for e-motors, inverters and electric drive systems is expected to have significant growth between now and 2030.

LG has experience in the development of electric vehicle components, most notably for the Chevrolet Bolt EV and Jaguar I-PACE. LG will help accelerate Magna’s time to market and scale of manufacturing for electrification components, while software and systems integration are competencies Magna brings to the venture.

“This partnership fully aligns with our strategy of being at the forefront of electrification and supporting automakers with a diverse and world-class portfolio,” said Magna president and incoming CEO, Swamy Kotagiri.

“By combining our strengths, we expect to gain investment efficiency and speed to market with synergies to achieve more, all while continuing to capitalise on the acceleration of the electrified powertrain market.”

For his part, LG Electronics Vehicle Component Solutions Company president, Kim Jin-yong, added: “Manufacturers need to be disruptive to maintain leadership positions in electrification and, through this deal, LG is entering a new phase in its automotive components business, a growth opportunity with enormous potential.”

“We believe the combination of our in-house prowess and the experience and extensive history of Magna will transform the EV powertrain space faster than if we proceed alone.”

The JV will include more than 1,000 employees located at LG locations in the US, South Korea and China.

The transaction is expected to close in July, 2021, subject to a number of conditions including obtaining LG shareholder approval and all necessary regulatory approvals.