LG Electronics and Magna International tie-up is reportedly close to an Apple Car deal

Shane McGlaun - Apr 14, 2021, 5:19am CDT
LG Electronics and Magna International tie-up is reportedly close to an Apple Car deal

One of the most interesting rumors that has come out of Cupertino in the last several years has nothing to do with smartphones or computers. The most interesting rumor swirling around having to do with Apple is the long-rumored Apple EVr. The EV was first rumored years ago, and subsequent rumors claimed the project was dead, but it appears to be at a more advanced stage at this point.

A new report claims a joint venture between LG Electronics and a Canadian automotive supplier called Magna International tentatively named LG Magna e-Powertrain is “very near” to signing contracts with Apple to build its electric vehicle models. A source who claims to be familiar with the negotiations told The Korea Times that LG Magna e-Powertrain is very close to signing contracts with Apple that would see the joint venture handle the initial volume production of Apple EVs.

The source was clear that details were still being discussed at this time. Assuming the contract is signed, the volume of vehicles isn’t expected to be particularly large right out of the gate. The report indicates that Apple wants to use the first-generation EV as a tool to evaluate the vehicle’s marketability. One of the more interesting aspects of the deal is that LG Group affiliates are already within the Apple supply chain.

What that means, according to the source, is that LG Displaying, LG Chem, LG Energy Solution, and LG Innotek are all in the Apple parts supply chain, meaning Apple doesn’t have to worry about any supply chain issues. All of those LG affiliates can also guarantee production yields and faster delivery of parts required for the Apple EV. LG officials have offered no official comment on the rumor.

Another source says that since the LG brand isn’t a big name in the global EV industry, it needs a competitive reference to show off its efforts in the segment. From that aspect, LG is reportedly betting big on the Apple EV, making this a win-win situation for both Apple and LG. Both sources stress the monetary volume of the partnership won’t be huge.


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