LG-Magna JV Close To Finalising Deal For Apple EV
Modified On Apr 15, 2021 10:34 AM By Sonny
The Apple car is expected to make its prototype debut in 2024
Apple to launch its own autonomous passenger electric vehicle.
It is expected to form partnerships for the manufacturing and supply of components.
Latest news from Korea suggests LG-Magna joint venture could get the Apple EV contract.
Magna International is an established automotive manufacturing company in Canada.
LG could supply various EV components while Magna may manufacture the EV in North America.
Apple intends to enter the autonomous EV space by 2024. While the US-based tech giant may have the expertise to write the code, it’ll likely form an alliance for the supply of components as well as for manufacturing. It has recently been reported that a joint venture between LG Electronics and Magna International is close to signing a deal with Apple to build the early batch of EVs. The JV has been tentatively named LG Magna e-Powertrain.
A source familiar with the matter told a Korean news outlet, "The LG-Magna e-Powertrain is very near to signing contracts with Apple under which they could handle the initial volume production of Apple EVs. Contract details are still being discussed."
Magna International is a well-established Canadian automotive manufacturing company that can make everything from the chassis to the entire vehicle. LG has some experience too with the auto industry. It has supplied motors, battery packs, and other components to Tesla and General Motors. The source also reports Apple already has LG Group affiliates in its parts supply chain, so the two brands have experience working together.
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The LG-Magna joint venture transaction is expected to be finalised in July. That still leaves plenty of time for them to finalise the deal for manufacturing the first Apple EV.
Apple has not made any statement of late regarding its EV project and LG officials too have declined to comment on the matter. Earlier in the year, Hyundai Group announced it is not in talks with Apple, suggesting the Korean partnership did not seem feasible for the American tech company.
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