LG-Magna JV to build EV parts in Mexico for GM

Canadian provider Magna International Inc. and South Korea’s LG Electronics Inc. broke floor at the moment on a manufacturing unit in Mexico that can provide parts for General Motors’ electrical automobiles, the businesses mentioned at the moment.

LG Magna e-Powertrain, the three way partnership created in 2021 between the 2 corporations, plans to open a 260,000-square-foot plant in Ramos Arizpe, Mexico, by 2023. The plant will make use of about 400 individuals producing inverters, motors and on-board chargers for GM, the businesses mentioned in a press release.

“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,” Magna Powertrain President Tom Rucker mentioned in a press release.

“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.”

The plant’s groundbreaking comes almost a year and a half after LG and Magna introduced their three way partnership in December 2020 and fewer than a year after the deal closed in July 2021. The enterprise, reportedly valued at about $1 billion in 2020, employs 1,300 individuals globally, in accordance to a information launch.

The price of the manufacturing funding was not disclosed, nor was it instantly clear which GM automobiles or meeting crops the LG-Magna manufacturing unit will provide. A Magna spokeswoman declined to remark.

GM has plans to build EVs at its Ramos Arizpe plant by 2023, the identical year the LG-Magna manufacturing unit is anticipated to be up and working. The automaker mentioned final year that it could spend about $1 billion to retool that plant for EV manufacturing.

The GM Ramos Arizpe plant is anticipated to start manufacturing of an electrical Chevrolet Blazer mannequin in mid-2023, adopted by the Chevy Equinox EV later that year, after which a model for Honda in 2024, in accordance to AutoForecast Solutions LLC.

LG-Magna e-Powertrain known as GM its “foundational customer” for the brand new manufacturing unit, saying it’ll play a “key role in GM’s journey to build a strong, scalable, sustainable and North America-focused EV supply chain.”

“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,” LG-Magna CEO Cheong Won-suk mentioned in a press release.

Magna ranks No. 4 on the Automotive News checklist of the highest 100 world suppliers, with worldwide parts gross sales to automakers of $32.65 billion in 2020.

Hannah Lutz contributed to this report.

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