Canada’s Magna, South Korea’s LG to build first EV parts plant in Europe
- September 5, 2023
- Posted by: Quatro Strategies
- Categories: Europe, EVs & Battery Technology
LG Magna e-Powertrain Co., a joint venture between South Korea’s LG Electronics and Canada-based Magna International, is set to construct its first electric vehicle (EV) parts production plant in Europe. The plant will be located in Miskolc, northeastern Hungary, and is part of the company’s efforts to expand its presence in the global EV market.
The facility, expected to be completed by 2025, will encompass a gross floor area of 26,000 square meters and will mark the company’s first manufacturing site in Europe, which is considered a strategically significant market for EV components.
The Hungarian plant will focus on producing EV traction motors and other core components required for EV powertrains. Traction motors play a critical role in EVs by generating and transmitting power, serving as inverters and converters, and being integral to the vehicle’s powertrain system.
Once operational, the Hungarian plant will join LG Magna’s existing manufacturing facilities located in Incheon, South Korea; Nanjing, China; and Ramos Arispe, Mexico. This expansion reflects LG Magna’s commitment to meeting the rising demand for EV components in the European market, which is experiencing significant growth as the automotive industry shifts toward electric mobility.
LG Magna e-Powertrain Co. was established in July 2021 through a partnership between LG Electronics and Magna International. The construction of the new plant in Hungary is expected to enhance the company’s growth prospects while allowing it to better cater to the European EV market.
Interested in learning more?
Sign up for Top Insights Today
Top Insights Today delivers the latest insights straight to your inbox.
You will get daily industry insights on
Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.
Read more insights
Europe’s automakers brace for their toughest decade
The IAA Mobility show in Munich projected confidence with glittering displays, sleek new models, and bold promises of a future powered by electric mobility. But beneath the spotlights and carefully staged reveals, Europe’s automotive establishment is increasingly aware that it is entering the toughest decade in its history. Executives from Volkswagen, Mercedes-Benz, BMW, Porsche, and Renault openly acknowledged that the era of easy profits and dominance in global markets has come to an end.
The most immediate problem is China. For decades, it has been the growth engine of the global car industry, but demand is now stalling and a “brutal price war” has erupted. Volkswagen’s luxury arm, Porsche, saw sales in China plunge almost 28% in the first half of the year. Its chief executive Oliver Blume bluntly declared that the “Chinese luxury market does not exist anymore.” That is an extraordinary reversal for a brand that once relied on China as its most lucrative outlet.
UK government announces support for 11 green hydrogen projects
Britain’s Energy Security Secretary, Claire Coutinho, announced the selection of 11 projects to receive government support for green hydrogen production, as part of the UK’s commitment to investing £2 billion ($2.5 billion) over the next 15 years. The successful projects, totaling 125…
Rio Tinto makes funds available for Guinea iron deposit ahead of Chinese partners
Rio Tinto is shouldering the entire financial burden of preparatory work at the Simandou mining blocks, one of the world’s largest untapped iron ore deposits, due to delays in funds from its Chinese partners. Rio Tinto owns two of the four Simandou mining blocks as part of its Simfer joint venture with China’s Chalco Iron Ore Holdings (CIOH) and the government of Guinea.