At the 2023 IAA Mobility show in Munich earlier this month, LG Magna e-Powertrain Co., Ltd. announced it will open a new production facility in Miskolc, Hungary, in 2025. The joint venture between LG Electronics and Magna, which was formed in 2021, plans to start production with e-motors in 2026 and will offer a suite of electrified powertrain solutions in the future including inverters and onboard chargers for the growing EV market.

“Adding the new Hungary facility marks another milestone for the JV in executing its growth plan,” said Diba Ilunga, President of Magna Powertrain. “With this new capacity—the JV’s first in Europe—LG Magna e-Powertrain is well positioned to keep pace with customer demands and increases in global EV production.”

The 284,000-ft² (26,400-m²) facility will represent LG Magna e-Powertrain’s first production operations in Europe and is expected to create 200 new jobs.

“Our new facility is a testament to the remarkable growth of LG Magna e-Powertrain, thanks to our strong partnership,” said Eun Seok-hyun, President of LG Vehicle Component Solutions. “The new facility aims to meet the demands of European automakers, demonstrating our commitment to delivering innovative solutions to our customers.”

According to a recent report by Statista, the European EV market is expected to grow by almost 12% over the next five years. In anticipation of this growth in electrification, the JV was designed to offer automakers a scalable portfolio including complete component solutions that enable electrification and functionality.

“This new facility seeks to amplify the growth of LG Magna e-Powertrain in the European market,” said Cheong Won-suk, CEO of LG Magna e-Powertrain. “Along with the facilities in Mexico, China, and South Korea, the facility in Hungary will be critical as the company accelerates its position as a go-to mobility solutions partner in the fast-growing global EV market.”

The joint venture combines Magna’s expertise in electric powertrain systems and operations, with LG’s capabilities in component development for e-motors, inverters, and onboard chargers. The collaboration in design, engineering, and manufacturing happening within LG Magna e-Powertrain allows both companies to capitalize on market trends and address customer needs with innovative solutions.