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LG pivots from phones to cars, taking aim at EV supply chain

South Korean manufacturer draws on appliance R&D for partnership with Canada's Magna

LG forecasts the vehicle components division to turn a profit for the first time in six years in 2021.   © Reuters

SEOUL -- Next month will close one chapter and open another for LG Electronics as the South Korean company ends its money-losing smartphone business and starts an alliance in the fast-growing electric-vehicle supply chain.

LG will complete its exit from the phone business, which has spilled red ink for six consecutive years, by the end of July. During the same month, LG will spin off its EV drive system segment. Canada's Magna International, one of the world's leading auto parts suppliers, will buy a 49% stake in that unit to create a new joint venture.

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