LG Electronics and Magna Intercontinental claimed on Wednesday that the pair will kind a joint enterprise to make factors for electrical cars and trucks.

The joint undertaking, tentatively named LG Magna e-Powertrain, will be formed all over July subsequent calendar year after securing LG shareholder’s acceptance in March.

LG will possess a 51% stake in the enterprise and Magna 49%. Magna will put in $453 million for the shares.

See also: LG to unveil OLED TVs and dwelling appliances at CES 2021

The freshly formed firm will deliver e-motors, inverters, and on-board chargers, as properly as connected e-push devices to aid the growing worldwide shift in the direction of auto electrification, the pair explained.

It will utilise Magna’s energy in electric powertrain techniques and international community, and LG’s skills in part advancement for motors and inverters, they reported.

LG Magna e-Powertrain will be centered in Incheon, South Korea, and close to a thousand LG employees will transfer in excess of to the company.

LG Electronics kicked off its car ingredient resolution small business back again in 2013. In 2018, it obtained Austrian LED headlamp business ZKW for 1.1 billion euros.

LG is a provider of factors for electrical autos these types of as Chevrolet Bolt EV and Jaguar I-Rate. The firm’s affiliate, LG Electricity Solution, is a important battery provider to Tesla.

Formed in 1957, Canada-centered Magna is a important producer of car factors. It is also developing its individual autonomous driving technologies.

In 2017, Samsung expanded its automotive component small business with the acquisition of Harman for $8 billion.

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