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Canadian provider Magna International Inc. and South Korea’s LG Electronics Inc. broke floor right now on a manufacturing facility in Mexico that may provide components for Normal Motors’ electrical automobiles, the businesses stated right now.
LG Magna e-Powertrain, the three way partnership created in 2021 between the 2 corporations, plans to open a 260,000-square-foot plant in Ramos Arizpe, Mexico, by 2023. The plant will make use of about 400 folks producing inverters, motors and on-board chargers for GM, the businesses stated in an announcement.
“Within the area of simply over one yr, we have added an growth settlement, recognized a strategic location to help our buyer, and are actually within the technique of realizing our plans,” Magna Powertrain President Tom Rucker stated in an announcement.
“The constructing of a brand new facility is a real testomony to the power of this collaboration and dedication in delivering revolutionary options to clients to satisfy their challenges.”
The plant’s groundbreaking comes nearly a year and a half after LG and Magna introduced their three way partnership in December 2020 and fewer than a yr after the deal closed in July 2021. The enterprise, reportedly valued at about $1 billion in 2020, employs 1,300 folks globally, in line with a information launch.
The price of the manufacturing funding was not disclosed, nor was it instantly clear which GM automobiles or meeting vegetation the LG-Magna manufacturing facility will provide. A Magna spokeswoman declined to remark.
GM has plans to build EVs at its Ramos Arizpe plant by 2023, the identical yr the LG-Magna manufacturing facility is predicted to be up and operating. The automaker stated final yr that it will spend about $1 billion to retool that plant for EV manufacturing.
The GM Ramos Arizpe plant is predicted to start manufacturing of an electrical Chevrolet Blazer mannequin in mid-2023, adopted by the Chevy Equinox EV later that yr, after which a model for Honda in 2024, in line with AutoForecast Options LLC.
LG-Magna e-Powertrain known as GM its “foundational buyer” for the brand new manufacturing facility, saying it is going to play a “key function in GM’s journey to construct a powerful, scalable, sustainable and North America-focused EV provide chain.”
“The JV’s ongoing success will allow us to higher help our clients with best-in-class parts for the following technology of electrical automobiles, and assist us to broaden our presence within the fast-growing world EV market,” LG-Magna CEO Cheong Gained-suk stated in an announcement.
Magna ranks No. four on the Automotive Information record of the top 100 global suppliers, with worldwide components gross sales to automakers of $32.65 billion in 2020.
Hannah Lutz contributed to this report.
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