Category: Cars

Apple is set to sign a memorandum of understanding for the production of electric vehicles with a recently formed joint venture between electronics and battery specialist LG Electronics and automaker Magna, reports from Korea show from South.

Citing an LG Group source with apparent knowledge of the terms of the deal, the Korean Times says an agreement between Apple and the LG Magna e-Powertrain joint venture is “very close” but reveals that “the details are still under discussion. “. .

“LG Magna e-Powertrain is on the verge of signing contracts with Apple under which they could handle the initial volume production of Apple electric vehicles. Details of the contract are still being discussed,” the English-language newspaper said, citing its source.

The Korean Times reports that Apple’s planned EV production volume will remain limited as the consumer electronics giant tests the market in the same way as its initial messaging tablets and smartphone offerings, which were developed and manufactured. in partnership with Motorola before Apple developed the iPhone.

“Apple mainly intends to use its first generation electric vehicles as an opportunity to assess their marketing,” quotes its source LG.

He also claims that the existing collaboration between Apple and the LG Group will alleviate any supply chain issues.

“Since LG Group subsidiaries including LG Display, LG Chem, LG Energy Solution and LG Innoteck are already included in Apple’s spare parts supply chain, Apple does not have to worry about the issues of supply chain. These LG subsidiaries are qualified to ensure production yields and faster delivery of the partnerships needed for Apple electric vehicles. “

News of Apple’s intention to rejuvenate its plans for an electric vehicle to challenge Tesla surfaced in December 2020. At the time, reports citing Apple insiders suggested the company had already targeted 2024 for it. introduction of its first model.

Apple initially kicked off the development of an electric vehicle in 2014 as part of an internal project known as Project Titan. He then cut operations and staff down to focus on developing autonomous driving software as part of a consolidation of his EV plans. At the time, Project Titan was run by Doug Field, a longtime Apple employee who had worked at Tesla.

Since then, Apple has taken the project forward again, to such an extent that it is now supposed to seek development, supply chain and manufacturing support.

LG Magna e-Powertrain was established in December 2020 as a joint venture by LG Electronics and Magna “to manufacture electric motors, on-board inverters and chargers and, for some automakers, associated electronic transmission systems to support change growing worldwide towards vehicle electrification. “

The joint venture, which plans to employ more than 1,000 people at LG Group’s sites in the United States, South Korea and China, is expected to obtain trading approval in July 2021, subject to shareholder approval. from LG and Magna and the necessary regulatory approval. , according to a recent announcement.

The stake in LG Magna e-Powertrain, headquartered in Incheon City, South Korea, is valued at $ 925 million (£ 671 million). LG Electronics owns 51% of the shares, Magna the remaining 49%.

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