LG Magna ePowertrain, a recently launched joint venture between LG Electronics and Magna International, has broken ground on a new facility in Mexico, the JV’s first production footprint in North America. When completed, the 260,000-square-foot plant will produce a multitude of powertrain components to support electric vehicle production from General Motors (GM).
LG Magna ePowertrain is a relatively new joint venture launched in July of 2021 that now consists of over 1,300 employees across Korea, North and South America, Europe, and Asia.
By combining LG Electronics’ experience in technology and manufacturing of EV components with Magna International’s ($MGA) more than 65 years in traditional automotive manufacturing, the joint venture aims to become the number one e-mobility solutions provider for EVs.
Aside from its venture with LG, Magna International has manufacturing contracts for EV automakers like Fisker, REE Automotive, and Jaguar Land Rover, while simultaneously developing its own EtelligentDrive products like its new EtelligentReach powertrain.
A huge automotive player involved with Magna is GM, who will be the foundational customer for the new facility being built by LG Magna ePowertrain.
During a groundbreaking ceremony in Mexico today, representatives from LG, Magna, and GM were all present with shovels in hand to kick off a two-year build.
LG, Magna, and GM: A potential Cerberus for EV production
Magna announced the news on behalf of its joint venture in a press release today, sharing images of executives from LG, Magna, and GM attending the ceremony in Ramos Arizpe, Mexico, about an hour southwest of Monterrey.
As LG Magna ePowertrain’s first production presence in North America, the joint venture expects to create 400 new jobs. Those new employees’ first task will be manufacturing an arsenal of EV components for GM, including inverters, motors, and on-board chargers. Cheong Won-suk, CEO of LG Magna e-Powertrain spoke:
This new facility demonstrates the continuing growth of LG Magna e-Powertrain. 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.
The Mexico plant will join LG Magna ePowertrain’s lone manufacturing facility in Nanjing, China, and serve as a benchmark for how quickly the young joint venture is expanding. Having support from major manufacturing and technology companies like LG, Magna International, and GM certainly helps too. Tom Rucker, president of Magna Powertrain elaborated:
In the space of just over one year, we’ve added an expansion agreement, identified a strategic location to support our customer, and are now in the process of realizing our plans. 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.
Now that the ground on the Ramos Arizpe has officially been broken, LG Magna ePowertrain will begin actual construction, which is expected to be completed in 2023.
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