LG Magna e-Powertrain Plant Coming to Mexico

LG Magna e-Powertrain celebrated the start of construction of its upcoming plant in Ramos Arizpe, Coahuila, which is expected to be finished by 2023. The facility will be the first production base in North America of the joint venture between LG Electronics and Magna International. The plant will provide General Motors (GM) with the components it needs for its EV platform, generating about 400 new jobs within the 260,000 ft2 plant.

“The building of a new facility is a true testament to the strength of this collaboration and commitment in delivering innovative solutions to customers to meet their challenges. It also reinforces our active participation in the electrification transformation whether by eDrive sub systems or full systems,” said Tom Rucker, President, Magna Powertrain.

The goal of LG Magna e-Powertrain is to create an eco-friendly clean future and provide the best products for EVs. After its announcement in 2020, the joint venture has been on the path to become one of the main e-mobility solutions partner and the production of EV sub-assemblies will strengthen its role in this market segment. The plant will manufacture inverters, motors and on-board chargers for GM, which is its foundational customer.

GM is continuously collaborating in alliances towards the acceleration to electromobility. In early 2022, Posco Chemicals announced a joint venture with GM’ electric vehicle platform Ultium in North America. Moreover, the OEM also allied with Honda to develop accessible EVs and plans to produce millions of these vehicles by 2027. Their plans include the development of a totally electric product for North America, including Mexico, offered at an accessible price.

GM has a plant located in the same area as the future LG Magna e-Powertrain plant. But GM’s plant in Coahuila has paused production as it transitions to manufacture EVs, which will turn the state into the first Mexican region to produce these vehicles. The closeness of the plants poses a strategic advantage.

“The investment of LG Magna e-Powertrain and Magna is extremely important for the state because both companies are a guarantee that we will be prepared to face the new global challenges regarding energy. But above this, it is important for the constitution of a new cluster in Coahuila that will entail the manufacture of electric vehicles,” said Miguel Ángel Riquelme, Coahuila’s Governor.

Ramos Arizpe is one of Mexico’s most important automotive clusters as it houses automobile plants from GM, Fiat Group, Chrysler, Daimler and Freightliner, as reported by MBN. During 2021 over 364,000 light vehicles were manufactured and the state manufactured transport equipment valued at over US$8 billion. According to Riquelme, regardless of the challenges originated by the pandemic, the state’s automotive industry maintains itself as an example of dynamism and competitiveness. 

“The automotive industry is the one that has the highest number of investment projects. An investment of US$4.85 billion is destined to the sector and there are approximately 50 ongoing projects,” he added.