LG Electronics’ joint venture with Magna International is ‘very near’ to signing contracts to build Apple’s early electric vehicle models, according to The Korea Times. Contract details are still being discussed, and a prototype of the EV will be teased in early 2024.
The production volume the joint venture could handle won’t be huge as Apple intends to use its first-generation EVs as an opportunity to evaluate their marketability.
The development comes when LG Electronics is under pressure from investors to produce results from vehicle component-related businesses after abandoning its handset business.
LG’s smartphone exit is expected to boost its margins, and the company could use the money in vehicle component-related businesses.
LG Magna e-Powertrain, the joint venture, is valued at $1 billion and will manufacture e-motors, inverters, and onboard chargers.
LG will own 51% of the joint venture, while Magna, a Canada-based automotive supplier, will own 49%.
LG Electronics and Magna International stocks are currently gaining. 066570: KRX is up 2.54%, MGA: NYSE is up 3.23%.
