Apple Car may be produced by a joint venture of LG and Magna

Apple’s search for an electric car maker might come to an end with the option of a joint venture between LG and Magna.
According to the Korea TimesLG Electronics and auto maker Magna International will form a joint venture to produce electric cars for Apple.

The newly formed company may be called LG Magna e-Powertrain with a capital investment of $ 1 billion with the main manufacturing areas of electric vehicle engines, frequency converters and chargers. LG will hold a 51% stake and the Canadian auto company will own 49%.

The formal agreement can be signed this July after being reviewed and approved by LG’s shareholders.

Previously, LG announced its withdrawal from the phone business to focus on other areas such as electric vehicle components, connected devices, smart home, robotics, artificial intelligence, B2B solutions for businesses, and several other platforms and services.

LG and Magna could work together to make electric cars for Apple. Photo: Korea Times.

Source of Korea Times commented that LG currently does not have too much experience in the field of cars or electric vehicles. The selection of the Apple Car electric vehicle project is for the Korean giant to demonstrate its transformation efforts.

The deep relationship between Apple and LG is said to be an important factor in bringing these two corporations to a cooperation agreement in the automotive sector. Apple is currently a partner of many LG subsidiaries such as LG Display, LG Chem, LG Energy Solution and LG Innotek.

In addition, LG has played a role in supplying engines, battery packs and components for electric vehicles of General Motors and Tesla. Magna has many years of experience in providing technology solutions for many car manufacturers.

Representatives from LG currently declined to comment on the information Korea Times.

Since the beginning of 2021, Apple is said to have been looking for partners to research and manufacture self-propelled electric cars. Initially, Hyundai and Kia were the first two names to sit at the negotiating table with Apple and were unsuccessful. Then, it was reported that Apple had contacted six Japanese carmakers, but the results were not better.