Benzinga | Jul 28, 2021 06:51AM EDT

Magna Signs Joint Venture Agreement With LG Electronics Focussed On Powertrain Components

* Magna International Inc (NYAE: MGA) has signed a joint venture agreement with LG Electronics Inc to form a new company called LG Magna e-Powertrain.

* The new JV company will have its headquarters in Incheon, South Korea.

* The new company will develop powertrain components that offer automakers a scalable portfolio, from complete solutions enabling electrification and integrating intelligent operating software and controls in new e-drive systems.

* The joint venture aims to bring Magna's strength in electric powertrain systems and automotive manufacturing, with LG's expertise in component development for e-motors and inverters.

* CEO of the new company is Cheong Won-suk, who was most recently vice president and head of the LG Vehicle Component Solutions.

* Javier Perez, who has been with Magna since 2016, will be the new company's COO.

* The companies expect LG Magna e-Powertrain to capitalize on the growing global shift toward vehicle electrification.

* The new company will have more than 1,000 employees in the United States, South Korea, and China.

* "The market for e-motors, inverters, and electric drive systems is expected to have significant growth between now and 2030. Our joint venture company brings together experts from Magna and LG to deliver a world-class portfolio of electric solutions," said new company COO Javier Perez.

* Price action: MGA shares closed lower by 0.86% at $81.03 on Tuesday.