LG Magna e-Powertrain, LG Electroincs' joint venture with Canadian auto parts maker Magna International Inc., said Monday it will build an electric vehicle (EV) components factory in Hungary.
The new 26,000-square-meter production base, the company's first in Europe, will be built in the northeastern city of Miskolc by 2025, LG Magna e-Powertrain said.
"The factory will accelerate the growth of LG Magna e-Powertrain by enabling it to actively respond to demand in the European market," CEO Cheong Won-suk said.
Known for its heavy industry, the Hungarian city has distribution and transportation infrastructure, and major European carmakers have factories near the city, according to the company.
LG Magna e-Powertrain, which was established in July 2021, is currently operating production bases in South Korea, China and Mexico. Earlier this year, it completed construction of the Mexican factory to produce inverters, motors and on-board chargers for General Motors.
LG Electronics is set to attend IAA Mobility 2023, an annual global mobility show slated to open in Munich on Tuesday, as part of efforts to gain a bigger share in the fast-growing EV parts market.
LG's EV component division, consisting of in-vehicle infotainment systems, e-powertrain and headlamps, has grown at an annual pace of 30 percent since it began operations more than 10 years ago.
For the second quarter, the division reported sales of 2.66 trillion won (US$2.01 billion), the highest second-quarter revenue in company history.
LG expects the EV unit's accumulative order backlog to reach 100 trillion won by the end of the year amid the explosive growth of electric vehicles.
Earlier this year, LG Electronics CEO Cho Joo-wan said his company will work to deliver new in-vehicle experiences to customers, as cars are no longer a mere transportation means but serve various purposes.
Source: Yonhap News Agency