RAMOS ARIZPE, Coahuila. The South Korean company LG Electronics and the auto parts manufacturer Magna International laid the first stone of a plant in Ramos Arizpe, Coahuila, dedicated to manufacturing inverters, electric motors and integrated chargers for the electric vehicles that General Motors will start producing in Mexico in 2023.
The US automaker announced in April 2021 to convert the Ramos Arizpe plant, Coahuila, to assemble electric vehicles. Then, General Motors said that the production of batteries and electrical components would start in the second half of 2021.
“Both companies made the decision to build a new plant in July 2021 and only three months later Mexico was chosen to do so,” said Tracy Fuerst, vice president of corporate communications for Magna. “We thought it was the best location because we would be close to the client (General Motors’ Ramos Arizpe plant) and also because we could be close to our own plants,” he added.
The new plant will require an initial investment of 100 million dollars and will generate 400 jobs in the first phase. The 24,000-square-meter complex will be the first production base in North America for LG Magna e-Powertrain , a joint venture created in December 2020 to manufacture key components for electric vehicles.
“This new facility demonstrates the continued growth of LG Magna e-Powertrain,” said Cheong Won-suk, CEO of LG Magna e-Powertrain. “In just over a year, we added an expansion agreement, identified a strategic location to support our customer and are now in the process of realizing our plans,” added Tom Rucker, president of Magna Powertrain.
LG Electronics is a key supplier in General Motors’ electrification strategy. The South Korean company, a subsidiary of the LG Group, assembles the cells into modules and battery packs for Chevrolet Bolt electric vehicles. The main subsidiaries of the LG Group, South Korea’s fourth largest conglomerate, include LG Display, which counts Apple as a customer, and LG Chem, whose subsidiary LG Energy Solution supplies batteries for Tesla’s electric vehicles.
Magna, a Canadian manufacturer with 30 plants in Mexico, 50 in Canada and 55 in the United States, is also a key supplier in General Motors’ electrification strategy. In February 2021, the company spent $70 million to build a new plant in Michigan, USA, dedicated to manufacturing the battery boxes for the new 2022 GMC Hummer EV.
With the construction of these new plants dedicated to the production of components for electric vehicles, the Canadian manufacturer, which for decades has focused on the production of body parts and chassis for gasoline vehicles, now seeks to survive the electrification of vehicles.