Aurora, Ontario — Aurora, Ont.-based auto parts manufacturer Magna International has announced a deal with LG, in which the companies will colloborate on components for electric vehicles.
The joint venture tentatively has been called LG Magna e-Powertrain, and Magna says the deal combines its strength in electric powertrain systems and manufacturing with LG’s expertise in component development for e-motors and inverters.
The joint venture will include more than 1,000 employees located at LG locations in the United States, South Korea and China.
The agreement is expected to close in July and is subject to a number of conditions including LG shareholder approval.
The joint venture comes as the large automakers move rapidly to develop electric vehicles.
Both Ford Motor and Fiat Chrysler announced this fall that they are moving toward electric vehicle production at some of their Canadian plants.
Magna announced earlier this year that it would be helping to manufacture an electric SUV for startup Fisker Inc. in Europe.