LG Magna’s Mexico plant groundbreaking is to supply General Motors EV Parts.
On April 19, LG Magna e-Powertrain broke ground in its new plant in Ramos Aripze, Mexico. There is also a General Motors plant in the same city, which currently builds gasoline-powered Chevrolet Blazer and Equinox SUVs. However, GM still plans to produce EVs in the said plant in 2023, which will be the same year the LG Magna e-Powertrain plant is expected to finish.
In a press release, Cheong Won-suk, chief executive officer of LG Magna e-Powertrain, said that “This new facility demonstrates the continuing growth of LG Magna e-Powertrain. The JV’s ongoing success will enable us to better support our customers with best-in-class components for the next generation of electric vehicles and help us to expand our presence in the fast-growing global EV market.” GM is also described as the foundational customer for the new facility which “will play a key role in GM’s journey to build a strong, scalable, sustainable and North America-focused EV supply chain.”
The president of Magna Powertrain, Tom Rucker, stated that “In the space of just over one year, we’ve added an expansion agreement, identified a strategic location to support our customer, and are now in the process of realizing our plans. The building of a new facility is a true testament to the strength of this collaboration and commitment in delivering innovative solutions to customers to meet their challenges.”
It is recalled that the joint venture between LG Electronics and Magna International was created last July 2021, which combined Magna’s strength in electric powertrain systems and automotive manufacturing with LG’s expertise in component development for e-motors and inverters. The joint venture is expected to fuel both companies’ growth in the highly competitive EV industry.
The Mexico plant is LG Magna e-Powertrain’s first production base in North America, will be 260,000 square-foot, and is expected to create an estimated 400 new jobs.