LG-Magna joint venture is about to win Apple's electric car project

According to foreign media reports, the joint venture between LG Electronics and Canadian auto parts supplier Magna International (temporarily named LG Magna e-Powertrain) has been 'very close' to Apple The company signs a contract to produce its early electric cars.

On April 13, a person familiar with the matter revealed to the Korea Times that “LG Magna Electric Power System is about to sign a contract with Apple and will be responsible for the initial mass production of Apple’s electric vehicles. The details of the contract are currently Still under discussion.'

(Image source: LG Electronics)

According to sources, the output of LG and Magna’s joint venture will not be so large, because Apple mainly intends to evaluate its market value through its first-generation electric vehicles. 'LG Group’s subsidiaries include LG Display, LG Chem, LG Energy Solutions, LG Innotek, etc., and these companies are already included in Apple’s parts supply chain, so Apple does not need to worry about any supply chain issues. These LG subsidiaries Has the ability to guarantee production output and faster delivery of parts and components required by Apple's electric vehicles.'

LG declined to comment on this matter.

After LG Electronics officially abandoned its mobile phone business, the company is actively responding to the increasing demand of investors and achieving performance in auto parts-related businesses. LG's exit from the smartphone business may increase its profit margins, and the company can also invest the money saved by exiting smartphones in auto parts-related businesses.

Another source said, “Since the LG brand is not very strong in the global electric vehicle industry, it needs a fairly competitive reference to demonstrate its transformation efforts. From this perspective, LG’s The bet on electric vehicles is not so bad, and it is also true for Apple.' The source also added that the amount of cooperation between the two parties will not be large.

Once the agreement is reached, the two parties will jointly determine the relevant details of Apple's electric car production, and the Apple prototype will be announced in 2024.