Magna and LG are “very near to signing contracts” in a collaboration to produce an Apple Car, reports say.
Together the companies are set to work under the name LG Magna e-Powertrain to make early electric-vehicle models for the Cupertino, Calif., tech giant, a source told the Korea Times.
Apple and LG Magna e-Powertrain “will jointly establish relevant details for the production of the Apple EV, a prototype of which will be teased sometime in early 2024,” the publication added.
The new company, held 51% by LG and 49% by Magna, is valued at $1 billion and will produce e-motors, inverters and onboard chargers, the Korea Times added.
The transaction is expected to close in July, pending conditions including a vote of LG shareholders.
If it closes, the deal with Apple is expected to be small, due to Apple intending to produce only test-market vehicles for evaluation, Apple Insider reports.
LG is expected to have an advantage since it's already an Apple supplier, the publication added.
Magna is based in Aurora, Ontario. It said it “would build vehicles at a plant in North America if contracted to do so,” the Korea Times reported.
At last check Magna shares traded on the New York Stock Exchange were 4.4% higher at $93.44. Apple shares were trading 2.5% higher at $134.47.