LG Magna to Build Electric Vehicle Parts Factory in Mexico... "First Overseas Factory After Joint Venture"

LG Electronics-Magna Joint Venture's First Overseas Factory
Scheduled for Construction in 2023 with a Total Floor Area of 25,000㎡

On the 19th (local time), the groundbreaking ceremony for the LG Magna electric vehicle parts production plant was held in Ramos Arizpe, Mexico. (From the second person on the left) Jung Won-seok, CEO of LG Magna; Eun Seok-hyun, Head of VS Business Division at LG Electronics; Cho Joo-wan, CEO of LG Electronics; Tom Luker, CEO of Magna Powertrain; Jeff Morrison, Vice President of GM.

[Asia Economy Reporter Park Sun-mi] LG Magna e-Powertrain is establishing an electric vehicle parts manufacturing plant in Mexico.

LG Magna e-Powertrain (hereafter LG Magna) announced on the 20th that it held a groundbreaking ceremony for its electric vehicle parts manufacturing plant in Ramos Arizpe, Coahuila, Mexico. LG Magna plans to build a manufacturing plant with a total floor area of 25,000 square meters by 2023. This facility will produce key components such as drive motors and inverters to be installed in General Motors (GM)'s next-generation electric vehicles.

The groundbreaking ceremony held on the 19th local time in Mexico was attended by Miguel Riquelme, Governor of Coahuila; Jeff Morrison, GM Vice President; Cho Joo-wan, CEO of LG Electronics; Eun Seok-hyun, Head of LG Electronics VS Business Division; Jung Won-seok, CEO of LG Magna; and Tom Lukker, CEO of Magna Powertrain.

This plant will serve as LG Magna's production hub in the North American region. It is particularly significant as the first overseas plant established since LG Electronics and Magna formed a joint venture last July. LG Magna will operate its third plant following those in Incheon, South Korea, and Nanjing, China.

LG Magna chose Ramos Arizpe, located in central Mexico and a hub of the automotive industry, as the site for the plant considering accessibility to major customer production bases and the potential synergy with Magna. This area is densely populated with factories of automakers such as GM and parts suppliers, and also houses Magna Powertrain's plant.

LG Magna plans to strategically respond to the U.S. government's eco-friendly mobility policies and use this new plant, which offers advantages in supply chain management, as a foothold to strengthen its penetration into the North American electric vehicle market.

Previously, in August last year, the U.S. government announced its plan to replace 50% of new vehicles sold domestically with eco-friendly electric vehicles by 2030. According to market research firm Markline, based on electric vehicle sales in January this year, the U.S. ranks as the third-largest electric vehicle market with 60,000 units sold, following China (350,000 units) and Europe (120,000 units).

Jung Won-seok, CEO of LG Magna e-Powertrain, stated, “The establishment of this new plant will be an opportunity for LG Magna to position itself as a key partner in electric vehicle parts for the North American automotive industry.” Eun Seok-hyun, Head of LG Electronics VS Business Division, emphasized, “We will strengthen the collaboration between LG Electronics and Magna in the automotive electronics business based on the first production base established in the North American region.”

This content was produced with the assistance of AI translation services.