LG Electronics and Magna International Joint Venture to build a plant in Hungary to produce electric car parts

CTOnews.com, September 4 (Xinhua)-- LG Magna e-Powertrain, a joint venture between LG Electronics and Canadian auto parts manufacturer Magna International, announced Monday that it will build an electric vehicle (EV) parts factory in Hungary.

CTOnews.com Note: LG Magna e-Powertrain was founded in July 2021 and currently has production bases in South Korea, China and Mexico.

The plant, which is expected to be completed in 2025, covers an area of 26000 square meters in the northeastern city of Mishkortz and produces key components of electric vehicle powertrains such as motors, inverters and converters for European automakers.

Cheong Won-suk, its chief executive, said: "the factory will accelerate the development of LG Magna e-Powertrain so that it can better respond to the needs of the European market."

The Hungarian city is known for its heavy industry, has distribution and transport infrastructure, and major European carmakers have factories near the city, the company said.

In addition, LG Electronics will attend IAA Mobility 2023, which is scheduled to open in Munich on Tuesday, when a large number of technologies related to electric vehicles are likely to be unveiled.

LG Electronics' electric vehicle parts division, which includes in-vehicle infotainment systems, electric powertrains and headlights, has grown at an annual rate of more than 30 per cent since it began operating more than a decade ago.

In the second quarter of this year, the department reported sales of 2.66 trillion won (CTOnews.com Note: currently about 14.657 billion yuan) 2, the highest second-quarter revenue in the company's history.

With the explosive growth of the electric vehicle market, LG expects the cumulative order backlog of its EV division to reach 100 trillion won (currently about 551 billion yuan) by the end of this year.