Gu Kwang-mo’s love for electric cars finally surpasses the limit of ‘LG of home appliances’

Check-in 2020.12.24 06:00

From battery to battlefield, the number of victories in the electric vehicle ecosystem

The ‘electric cars’ have become the food of the future for LG Group. The movement of the main subsidiaries of the group was aligned with electric vehicles. The related industry was well aware of LG’s move across the EV ecosystem.

23 days LG Electronics established a joint venture in the field of electric vehicle powertrain with Magna International (hereinafter Magna), a global auto parts company.Announced. The new corporation ‘LG Magna e-Powertrain Co., Ltd’ (working name) is based on a division of part of the green business within the VS headquarters of LG Electronics. The stock value of the new corporation is worth $ 925 million (1.25 trillion won). LG Electronics owns 51% of the stake and Magna acquires 49% for $ 453 million.

Kim Jin-yong, head of LG Electronics VS Business Division (vice president), related to the founder of the new corporation, “The joint venture will lead the next era of electric vehicles by actively using LG Electronics’ exceptional manufacturing technology, rich experience of Magna and the global network of customers. It will increase the competitiveness of the company. “

Magna was founded in 1959 and is the world’s third-largest auto parts company in terms of sales in 2019. In particular, Magna has strong technology in automotive driving parts, such as the powertrain, chassis, and drive system. all-wheel drive internal combustion engine. The company acquired Steyr in 2001, and its manufacturing power is excellent enough to ship cars from major manufacturers like Mercedes-Benz and BMW to the Austria plant.

The green business within the VS headquarters of LG Electronics, which joins the newly established subsidiary, has technological and manufacturing competitiveness for the core parts of electric vehicle powertrains. The green business has been in charge of the development and production of motors, inverters, vehicle chargers, which are key parts of electric vehicles, as well as propulsion systems (products with modularized motors, inverters and reducers).

The new subsidiary in which both companies participated is expected to have strong competitiveness in the future green car market. In the automotive industry, LG Electronics and Magna are paying particular attention to the synergies that will be enjoyed by sharing the customer pool. The current composition of the global electric vehicle market is a pattern that automakers are following after the launch of Tesla. In this situation, industry analysts say that both the IT field that wants to enter the electric vehicle market and the finished car industry that wants a stable supply of competitive powertrain modules can become customers of the new corporation.

“Magna has traditionally been strong in the powertrain field in the North American auto industry, and the German auto industry is also exerting great influence in the driving field,” said Jaeyong Park, auto columnist. “With this decision to establish a new corporation, LG has arguably secured the foundations to provide the opportunity to take a step forward in the game.”

President Kwang-mo Koo is working in the field of electric vehicles
Spin-off of LG Energy Solution and reinforcement of the electronic equipment business ‘Speed ​​Battle’

LG Chairman Kwang-mo Koo’s ‘Love for Electric Vehicles’ is also famous within the group. LG Chem’s rise to the top of the global electric vehicle battery market was also based on the full support of Chairman Kwang-Mo Koo. A message from a source within the group is that Chairman Koo deals with the details of problems related to electric vehicles, such as batteries.

The launch of LG Energy Solutions, a new corporation earlier this month, is representative. LG Chem took over the board of directors on September 17 and decided to split the battery business within the company.. LG Chem plans to turn the new corporation into the best energy solutions company in the world, focusing on batteries, with sales of more than 30 trillion won in 2024. The new corporation’s sales in 2020 are estimated at 13 trillion won.

In the field of electric vehicle batteries, LG Energy Solutions continues to aggressively advance towards the realization of the super gap. The company started large-scale production in China this year. Developing a cylindrical battery for Tesla, Decided to increase the offer. Here, the share of nickel has increased since the new year. 4 Raw materials commercialization of ‘nickel, cobalt, manganese, aluminum’ batteries (NCMA) in 2021, Tesla and GM decided to supply it. End of 2019 Electric Vehicle Battery Cell Joint Venture Established by GM and LG Chem for 1 Trillion KRW EachIt is also a reliable food for the future. It appears to be accelerating its qualitative and physical growth targeting the future field of electric vehicle batteries.

In the field of electrification, it is also assessed that LG Group has already built its own ecosystem. LG Display products are included in LG Electronics’ infotainment system for vehicles. LG Innotek produces car engines and LED headlights.

The securities industry also predicted that LG Group’s green car moves will lead to the reversal of the VS headquarters of LG Electronics. Hello Investment & Securities reported in the report: “We expect the VS division of LG Electronics to turn black after the third quarter of 2021. If the sales of electric vehicle powertrain parts that were recently ordered are connected to 2021, the VS division is expected to grow high and be profitable. I can, “he analyzed.

Reporter Ahn Hyo-moon [email protected]

Copyright © IT Chosun.