Shares of Magna International hit a record high on Wednesday as it entered into an agreement with Canadian company LG Electronics to form a joint venture to build parts for (Aurora) electric cars.
The Canadian auto parts company’s title rose $ 7.29 or 8.5% on the Toronto Stock Exchange on Wednesday. Ended at 92.96.
Magna announced on Tuesday that it will manufacture electric motors, current converters and on-board chargers. It also manufactures electronic transmission systems for some automobile manufacturers.
“This partnership is fully integrated with our strategy of being on the verge of electrification and supporting automotive manufacturers with a diverse and world-class portfolio,” said Swami Kotagiri, Magna President and new CEO. In a press release.
The joint venture is now known as the “LG Magna e-Powertrain”. Magna says it combines LG’s expertise in developing components for electric motors and current converters (AC and DC) with its strength in electric powertrain systems and manufacturing.
The joint venture employs more than 1,000 people in LG factories in the United States, South Korea and China. The deal expires in July and is subject to a number of conditions, including the approval of LG shareholders.
This joint venture was created as major automakers are working hard to develop electric vehicles quickly.
Ford and Fiat Chrysler announced this fall that they would like to produce electric vehicles at some of their factories in Canada.
Magna announced earlier this year that it would help startup company Fisker build an electric SUV in Europe.