LG Magna e-Powertrain, the joint venture between South Korea's LG Electronics and Canada's Magna International, broke ground on its new plant in Ramos Arizpe, Mexico, on April 19.

If the name of the northern Mexico city rings a bell, it may be because General Motors also has a plant there, which currently builds the gasoline-powered Chevrolet Blazer and Equinox SUVs. However, GM plans to produce EVs in Ramos Arizpe starting in 2023, the same year the LG Magna e-Powertrain factory is expected to be completed.

GM is likely to build the all-electric Chevy Blazer and Equinox SUVs at the Mexican plant (the former from mid-2023 and the latter later that same year), according to AutoForecast Solutions cited by Automotive News. An electric vehicle for Honda—possibly the Prologue SUV—is expected to follow in 2024, as per the same source. The electric SUVs will be supplied with inverters, motors, and on-board chargers made at the LG-Magna facility.

The 260,000 square foot plant will be LG Magna e-Powertrain's first production base in North America and will create an estimated 400 new jobs.

Gallery: LG Magna e-Powertrain breaks ground on new EV parts plant in Mexico

In the joint venture's press release, General Motors is described as the foundational customer for the new facility, which "will play a key role in GM's journey to build a strong, scalable, sustainable and North America-focused EV supply chain."

"This new facility demonstrates the continuing growth of LG Magna e-Powertrain. The JV's ongoing success will enable us to better support our customers with best-in-class components for the next generation of electric vehicles, and help us to expand our presence in the fast-growing global EV market."

Cheong Won-suk, chief executive officer of LG Magna e-Powertrain

First announced in December 2020 and created in July 2021, the LG Magna e-Powertrain joint venture combines LG's expertise in developing components for motors, inverters and on-board chargers with Magna's prowess in electric powertrain systems and automotive manufacturing. 

"In the space of just over one year, we've added an expansion agreement, identified a strategic location to support our customer, and are now in the process of realizing our plans. 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."

Tom Rucker, president of Magna Powertrain

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