▲ Image of LG Magna's Hungary factory (Image courtesy of LG Magna)

Production of drive motors... Expanding key EV powertrain components in response to customer demand
“Actively Responding to European Market Demand with Establishment of Hungarian Factory… Expecting Accelerated Growth”

LG Magna e-Powertrain (hereinafter LG Magna) is establishing an electric vehicle parts production plant in Europe and accelerating its global business expansion.

LG Magna announced at a press conference held on the 4th (local time), ahead of the opening of 'IAA Mobility 2023' in Munich, Germany, that it will build an electric vehicle parts production plant in Miskolc, northeastern Hungary.

LG Magna plans to build a factory with a total floor area of 26,000 square meters by 2025 and will hire approximately 200 new employees once completed.

As the first factory to be built in Europe, a strategically important market, we plan to produce drive motors and later manufacture key components for electric vehicle powertrains according to customer demand.

The electric vehicle powertrain consists of a drive motor, inverter, converter, etc., which generate and transmit power, and serves as the heart of the electric vehicle.

LG Magna selected Hungary as its European production base, considering factors such as accessibility to major European automotive clients and synergies with Magna.

Miskolc, a city with developed industrial sectors such as automobiles and machineryIt has excellent logistics and transportation infrastructure.

Major European automobile factories are located nearby, and the Hungarian government and the Miskolc city authorities have also been very proactive in the construction of LG Magna's new factory.

LG Magna is further strengthening its global market offensive using its new factory as a base.

With the addition of Incheon, South Korea; Nanjing, China; and Ramos Arizpe, Mexico, a total of four factories will be in operation, and these overseas production plants are expected to contribute significantly to strengthening European and global business.

Jeong Won-seok, CEO of LG Magna e-Powertrain, stated, “The establishment of the new factory will serve as an opportunity to accelerate LG Magna’s growth while actively responding to demand in the European market.”

Eun Seok-hyun, Head of LG Electronics’ Vehicle Solutions Business Division, emphasized, “The European plant demonstrates our commitment to meeting the demands of European automakers and providing innovative electric vehicle powertrain solutions,” while Magna Powertrain President Diva Ilunga stated, “The first production plant to be built in Europe showcases the core partnership of the joint venture.”

Meanwhile, LG Magna is a joint venture established in July 2021 by LG Electronics and Magna, one of the world's leading automotive parts companies.

LG Electronics’ automotive business is expanding its presence in the global automotive parts market based on the balanced growth of its three core businesses, which are considered key technologies for the future mobility era, such as electric vehicles and autonomous vehicles: vehicle infotainment systems (VS Business Division), electric vehicle powertrains (LG Magna e-Powertrain), and vehicle lighting systems (ZKW).