In a major move to solidify its position in the electric vehicle (EV) supply chain, LG Electronics’ parent group, LG Corporation, has entered a landmark joint venture with Canadian auto parts giant Magna International.
The 50:50 joint venture, named LG Magna e-Powertrain, represents a total investment pool of over $2.2 billion. It combines LG’s expertise in electric motor and inverter development with Magna’s deep automotive systems integration and manufacturing prowess. The new entity will manufacture critical e-drive systems—including motors, inverters, and onboard chargers—for global automakers.
This deal is a strategic masterstroke for LG, providing a direct and scaled channel for its vehicle component solutions (VS) division. It immediately positions the company as a top-tier supplier in the rapidly growing EV powertrain market, securing long-term contracts with major car manufacturers and challenging established players. Analysts view this as a critical step for LG to translate its R&D in mobility into significant, sustainable market share and profitability.