LG and Magna invest $100 million in electric car component factory

RAMOS ARIZPE, Coahuila. South Korean company LG Electronics and auto parts maker Magna International have laid the foundation stone for a plant in Ramos Arizpe, Coahuila, dedicated to manufacturing inverters, electric motors and integrated chargers for electric vehicles that General Engines will begin production in Mexico in 2024. The American automaker announced in April 2021 an investment of more than 1,000 million dollars convert the plant in Ramos Arizpe, Coahuila, to assemble electric vehicles. Then General Motors said production of batteries and electrical components would begin in the second half of 2021. ‘The two companies made the decision to build a new plant in July 2021 and only three months later, in October, Mexico has been chosen to do,” said Tracy Fuerst, vice president of corporate communications at Magna. “We thought it was the best location because we would be close to the customer (General Motors’ Ramos Arizpe factory) and also because we could be close to our own factories,” he added. The new plant will require an initial investment of $100 million and will generate 400 jobs in a first phase. The complex of more than 24,000 square meters will be the first production base of LG Magna e-Powertrain in North America, a joint venture created in December 2020 to manufacture key components for electric vehicles.

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LG Electronics is a key supplier in General Motors’ electrification strategy. The South Korean company, a subsidiary of the LG group, assembles the cells into modules and batteries for Bolt electric vehicles.

“This new facility demonstrates the continued growth of LG Magna e-Powertrain,” said Cheong Won-suk, CEO of LG Magna e-Powertrain. “In just over a year, we have secured an expansion agreement, identified a strategic location to support our customer and are now on track to deliver on our plans,” added Tom Rucker, President of Magna Powertrain. With the construction of the new Ramos Arizpe plant, the two suppliers will “support General Motors in building a strong, scalable, North American-focused electric vehicle supply chain,” at a time when the automaker automotive is advancing against the clock to comply with new regional content requirements established in the USMCA to avoid paying tariffs. LG Electronics is a key supplier in General Motors’ electrification strategy. The South Korean company, a subsidiary of the LG group, assembles the cells into modules and battery packs for electric vehicles. Chevy Bolts. Major subsidiaries of LG Group, South Korea’s fourth-largest conglomerate, include LG Display, which counts Apple as a customer, and LG Chem, whose subsidiary LG Energy Solution supplies batteries for Tesla’s electric vehicles. awesome , a Canadian manufacturer with 30 plants in Mexico, 50 in Canada and 55 in the United States, is also a key supplier in General Motors’ electrification strategy. In February 2021, the company spent $70 million to build a new factory in Michigan, USA, dedicated to manufacturing battery cases for the new 2022 GMC Hummer EV. With the construction of new factories dedicated to the production of components for electric vehicles, Magna, which for decades focused on the production of body and chassis parts for gasoline vehicles, is now looking to survive the electrification of vehicles.