Groundbreaking Ceremony for LG Magna's Electric Vehicle Parts Production Plant in Ramos Arizpe, Mexico
LG Magna's North American production base… first overseas plant since joint venture established

LG Magna e-Powertrain (hereinafter referred to as LG Magna) is establishing an electric vehicle parts production plant in Mexico.

LG Magna e-Powertrain held a groundbreaking ceremony for its electric vehicle parts production plant in Ramos Arizpe, Coahuila, Mexico on the 19th (local time).

LG Magna plans to build a 25,000-square-meter production plant by 2023. The plant will produce core components, including drive motors and inverters, for GM's next-generation electric vehicles.

The event was attended by Coahuila Governor Miguel Riquelme, GM Vice President Jeff Morrison, LG Electronics CEO Cho Joo-wan, VS Business Division President Eun Seok-hyun, LG Magna CEO Jeong Won-seok, and Magna Powertrain CEO Tom Rucker.

This plant is LG Magna's North American production base. It is the first overseas plant built by LG Electronics and Magna since the establishment of a joint venture in July 2021. This will be LG Magna's third plant, following Incheon, South Korea, and Nanjing, China.

LG Magna will establish a plant in Ramos Arrizpe, a hub of the automotive industry in central Mexico, taking into account its proximity to major customer production bases and synergy with Magna. This area is densely populated with factories of automakers like GM and parts manufacturers, and Magna Powertrain's factory is also located there.

LG Magna plans to use this new plant, which offers advantages in supply chain management, as a bridgehead to strengthen its presence in the North American electric vehicle market while strategically preparing for the U.S. government's eco-friendly mobility policy.

Last August, the U.S. government announced its goal of replacing 50% of new vehicles sold in the country with eco-friendly electric vehicles by 2030. According to market research firm Marklines, the U.S. sold 60,000 electric vehicles in January, making it the third-largest electric vehicle market, following China (350,000) and Europe (120,000).

“The establishment of this new plant will serve as an opportunity for LG Magna to establish itself as a key electric vehicle parts partner for the North American auto industry,” said Jeongwon Seok, CEO of LG Magna e-Powertrain.

Eun Seok-hyun, head of LG Electronics' VS business division, emphasized, "Based on the first production base being built in North America, we will strengthen the cooperation between LG Electronics and Magna in the electric vehicle business," and Tom Rucker, head of Magna Powertrain, said, "This will be a key base for both companies to advance as innovation partners in the electric vehicle era."