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

Canadian provider Magna Intercontinental Inc. and South Korea’s LG Electronics Inc. broke floor now on a manufacturing unit in Mexico that will provide components for General Motors’ electrical vehicles, the providers mentioned today.

LG Magna e-Powertrain, the joint undertaking designed in 2021 amongst the two corporations, programs to open up a 260,000-square-foot plant in Ramos Arizpe, Mexico, by 2023. The plant will hire about 400 people today making inverters, motors and on-board chargers for GM, the firms mentioned in a assertion.

“In the room of just above just one year, we’ve included an enlargement settlement, recognized a strategic site to support our purchaser, and are now in the method of realizing our options,” Magna Powertrain President Tom Rucker mentioned in a assertion.

“The making of a new facility is a correct testomony to the strength of this collaboration and commitment in delivering modern remedies to prospects to meet their worries.”

The plant’s groundbreaking arrives practically a yr and a half soon after LG and Magna declared their joint undertaking in December 2020 and much less than a 12 months just after the offer shut in July 2021. The undertaking, reportedly valued at about $1 billion in 2020, employs 1,300 individuals globally, in accordance to a news launch.

The value of the manufacturing expense was not disclosed, nor was it straight away obvious which GM cars or assembly vegetation the LG-Magna manufacturing facility will provide. A Magna spokeswoman declined to comment.

GM has designs to create EVs at its Ramos Arizpe plant by 2023, the very same year the LG-Magna manufacturing unit is expected to be up and working. The automaker mentioned last 12 months that it would commit about $1 billion to retool that plant for EV output.

The GM Ramos Arizpe plant is envisioned to start out output of an electric powered Chevrolet Blazer model in mid-2023, followed by the Chevy Equinox EV later on that calendar year, and then a design for Honda in 2024, according to AutoForecast Solutions LLC.

LG-Magna e-Powertrain known as GM its “foundational customer” for the new factory, stating it will participate in a “critical part in GM’s journey to establish a solid, scalable, sustainable and North The usa-centered EV supply chain.”

“The JV’s ongoing results will empower us to far better guidance our consumers with ideal-in-course factors for the subsequent technology of electric powered vehicles, and help us to grow our presence in the rapid-rising international EV current market,” LG-Magna CEO Cheong Won-suk said in a assertion.

Magna ranks No. 4 on the Automotive News checklist of the top rated 100 international suppliers, with globally pieces gross sales to automakers of $32.65 billion in 2020.

Hannah Lutz contributed to this report.