S. Korea's LG, Canada's Magna to launch EV powertrain JV on July 1

The South Korean tech giant LG Electronics Inc. and Canadian auto parts maker Magna International Inc. are set to launch their electric vehicle (EV) powertrain joint venture LG Magna e-Powertrain Co. on July 1.

Magna will then acquire a 49 percent stake in the new firm for US$453 million.

Based on their ownership stake, three members of the board in the joint venture will be chosen by LG, while Magna will select two.

The two reportedly agreed that LG will appoint the CEO of the joint venture while sharing the chief financial officer position.

LG and Magna already established subsidiaries in Nanjing, China, and Michigan, the US, in April to expand its global supply chain.

Local analysts see the joint venture’s revenue to surpass 500 billion won this year.

LG expects the joint venture to post 50 percent annual sales growth from 2022 to 2025.