Magna International and LG Electronics have broken ground on a factory in Mexico that will build parts for electric vehicles from General Motors.
The two companies first announced the LG Magna e-Powertrain joint venture in December 2020. The venture currently employs approximately 1,300 people and will grow with the establishment of the factory in Ramos Arizpe, set to offer 260,000 square feet of space and employing 400 people constructing inverters, motors, and on-board chargers.
Auto News notes that the factory is expected to be up and running by 2023. It isn’t known how much LG and Magna are investing to build the facility but it’s located in the same city where General Motors will start building EVs in its existing factory, also from 2023. Among the models expected to be built here will be the Chevrolet Blazer EV, Chevrolet Equinox EV, and an Ultium-powered Honda EV.
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“In the space of just over one year, we’ve added an expansion agreement, identified a strategic location to support our customers, and are now in the process of realizing our plans,” Magna Powertrain president Tom Rucker said in a statement. “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.”
LG Magna e-Powertrain considers General Motors a “foundational customer” and notes that it will play an important role in GM establishing a solid EV supply chain in the United States.
“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,” LG Magna chief executive Cheong Won-suk added.
