LG sets up billion-dollar venture in electric car segment

South Korea-based LG Electronics and automotive supplier Magna International are launching a joint venture that will make key components for electric cars, the companies announced on Wednesday.

The joint venture, tentatively called LG Magna e-Powertrain and valued at $1 billion, will manufacture e-motors, inverters, and onboard chargers, according to LG Electronics.

Shares of LG Electronics jumped almost 25% to their highest since 2011, compared to the broader market KOSPI’s 1% rise.