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LG Electronics signs $1bn EV parts venture with Canada's Magna

South Korean group's stock soars on deal targeting big share of growing market

The deal between Magna and LG, which has supplied EV components for Jaguar's I-Pace model, is the latest in a wave of sector consolidation.   © Reuters

SEOUL (Financial Times) -- LG Electronics will spin off part of its electric vehicle components business and set up a $1 billion joint venture with Canada's Magna International -- a deal that is aimed at capturing a bigger share of the fast-growing global EV parts market and which lifted its shares by nearly one-third.

The South Korean group will hold a 51% stake in the venture, and Magna the rest. The venture will produce e-motors, inverters and onboard chargers at LG's factories in Incheon, South Korea, and Nanjing in China, LG said.

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