LG Magna announces its first powertrain plant in Europe
LG Magna e-Powertrain, the Joint Venture between LG Electronics and the Austrian supplier, announced at the IAA Mobility that it is expanding with a new factory in Hungary.
The new plant will be LG Magna e-Powertrain’s first in Europe but is embedded in the company’s clientele. Located in the Miskolc industrial area, the plant benefits from “well-developed infrastructure and is strategically located near OEM customers,” according to LG Magna. It also connects to other Magna facilities throughout the region.
Scheduled for completion in 2025, the new facility will start producing electric motors before making electrified powertrain solutions, including inverters and onboard chargers, in the future.
About 200 staff will populate the 284,000-square-foot facility (26,400 sqm) at the initial start of production in 2026.
“Adding the new Hungary facility marks another milestone for the JV in executing its growth plan,” said Diba Ilunga, president of Magna Powertrain. “With this new capacity – the JV’s first in Europe – LG Magna e-Powertrain is well positioned to keep pace with customer demands and increases in global EV production.”
“Our new facility is a testament to the remarkable growth of LG Magna e-Powertrain, thanks to our strong partnership,” said Eun Seok-hyun, president of LG Vehicle Component Solutions. “The new facility aims to meet the demands of European automakers, demonstrating our commitment to delivering innovative solutions to our customers.”
The company has also received “strong support” from the Hungarian government and local authorities but has yet to disclose the funding commitments.
Envisioned in 2020, LG Magna e-Powertrain launched in July 2021 to manufacture electric motors, inverters and onboard chargers. The joint venture is headquartered in Incheon, South Korea, and now has 1,900 employees in Korea, North America, Europe, South America, and Asia.
The factory is the latest joint production facility after the company began works on a new plant in Ramos Arizpe, Mexico, with General Motors as its “founding customer”. GM has made vehicles at the site for years and is reportedly converting the plant to produce electric cars.
LG Magna has yet to name other clients, specifically in Europe.
Cheong Won-suk, chief executive officer of LG Magna e-Powertrain, said, “Along with the facilities in Mexico, China and South Korea, the facility in Hungary will be critical as the company accelerates its position as a go-to mobility solutions partner in the fast-growing global EV market.”
Hungary is quickly becoming an e-mobility powerhouse in Europe. While BMW has long held a stronghold, suppliers like Samsung SDI, Sunwoda, BYD and CATL, among others, are setting up (battery) shops.
As for LG Magna e-Powertrains, the joint venture says it combines Magna’s expertise in electric drive systems and manufacturing with LG’s capabilities in component development for e-motors, inverters and onboard chargers.
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