April 24, 2024

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[THE INVESTOR] LG Electronics is starting production at its electric vehicle parts plant in Nanjing, China, with the completion ceremony being held on Sept. 28, Donga Ilbo, a local news daily, reported.

The new plant is located adjacent to LG Chem’s new EV battery plant whose production started in October last year with an annual production capacity for 50,000 full-electric vehicles.

LG’s display-making unit LG Display is also operating a production line exclusive for automotive displays in the Chinese city. 

LG Electronics’ lightweight platform for EV

Through the combination of its production network, the Korean tech giant aims to beef up EV parts production in China, the world’s largest EV market.

LG has yet to reveal details of the production plans of the new plant. Citing unnamed sources, Donga Ilbo reported that the plant could focus on orders from General Motors for its upcoming Chevrolet Bolt EV.

In a strategic partnership with the US carmaker, LG plans to supply 11 key parts for the first full-electric Chevrolet model. 

Since setting up a separate vehicle components business division in 2013, LG has poured an annual 400 billion won (US$365 million) into the business over the past three years.

The company aims to secure an upper hand over its compatriot rival Samsung Electronics that is also making a big push on automotive parts since the establishment of a car parts business division in December last year.

By Lee Ji-yoon (jylee@heraldcorp.com)