LG Electronics Inc. is "well positioned" to become one of the industry's leaders in the area of electric and connected vehicles with its agreement to set up a joint venture with Canadian auto parts maker Magna International Inc., the company's chief executive said.

Brian Kwon, the CEO of LG Electronics, appeared at Magna's press conference for the all-digital Consumer Electronics Show (CES) 2021 on Monday (US time) and revealed his hopes for the new joint venture with Magna, which is tentatively named LG Magna e-Powertrain.

The two sides announced their partnership for the joint venture last month, with the deal expected to close in July 2021.

"At LG, we see the automotive business as one of the key drivers of our future business portfolio," said Kwon. "Our aim is to be one of the industry's leading suppliers of automotive components and solutions."

LG, whose mainstay business is home appliances, set up its vehicle component solutions (VS) business division in 2013 for future growth and has been trying to beef up its presence in the automotive sector.

"LG will provide electrical related capabilities, while Magna will bring fundamental automotive system expertise," he said. "I am confident that combined synergies will pave the wave for further innovations that will benefit the industry as a whole."

Also at Magna's press event, Kim Jin-yong, who heads LG's VS business unit, stressed that the partnership with Magna will be a "lasting one" and that the collaboration will benefit the industry for a long time.

"We believe this joint venture will put us in an advantageous position that allows for more efficient on-time investments," Kim said. "Moreover, Magna's strength will enhance our capabilities in areas such as automotive software and system level integrations."

Magna CEO Swamy Kotagiri said there is "a lot of opportunity" ahead for both companies and the joint venture as he expects that the market for e-motors, inverters and electric drive subsystems will "significantly grow between now and 2030."

"We couldn't be more excited to find a partner like LG and announce our joint venture," he said. "It is a deliberate step in our scalable, modular and flexible building block strategy to address and expand our foothold in electrification." (Yonhap)