After shutting down its smartphone business, South Korean tech giant LG Electronics is now aiming for the growing electric vehicle supply chain.
According to GizmoChina, by the end of July, LG will exit the phone business and shift its focus toward the EV business.
During the same month, LG will spin off its EV drive system segment.
The report said that Canada’s Magna International, one of the world’s leading auto parts suppliers, will buy a 49 percent stake in that unit to create a new joint venture.
The joint venture will be called LG Magna e-Powertrain and it will be headquartered in Incheon, it added.
The company is also preparing to establish bases in Michigan, the US, and Nanjing, China, aiming to secure customers in two countries that are major markets for EVs.
Canada-based Magna’s customers include major automakers like General Motors, BMW and Ford Motor.
Through the partnership with Magna, LG will have a greater potential to supplyto the global automotive leaders, the report said.