Canadian provider Magna Worldwide Inc. and South Korea’s LG Electronics Inc. broke floor at present on a manufacturing unit in Mexico that may provide elements for Normal Motors’ electrical autos, the businesses mentioned at present.

LG Magna e-Powertrain, the three way partnership created in 2021 between the 2 firms, plans to open a 260,000-square-foot plant in Ramos Arizpe, Mexico, by 2023. The plant will make use of about 400 folks producing inverters, motors and on-board chargers for GM, the businesses mentioned in a press release.

“Within the house of simply over one yr, we have added an enlargement settlement, recognized a strategic location to assist our buyer, and are actually within the means of realizing our plans,” Magna Powertrain President Tom Rucker mentioned in a press release.

“The constructing of a brand new facility is a real testomony to the energy of this collaboration and dedication in delivering revolutionary options to clients to fulfill their challenges.”

The plant’s groundbreaking comes almost a yr and a half after LG and Magna introduced their three way partnership in December 2020 and fewer than a yr after the deal closed in July 2021. The enterprise, reportedly valued at about $1 billion (all figures in USD) in 2020, employs 1,300 folks globally, in keeping with a information launch.

The price of the manufacturing funding was not disclosed, nor was it instantly clear which GM autos or meeting vegetation the LG-Magna manufacturing unit will provide. A Magna spokeswoman declined to remark.

GM has plans to construct EVs at its Ramos Arizpe plant by 2023, the identical yr the LG-Magna manufacturing unit is anticipated to be up and operating. The automaker mentioned final yr that it might spend about $1 billion to retool that plant for EV manufacturing.

The GM Ramos Arizpe plant is anticipated to start manufacturing of an electrical Chevrolet Blazer mannequin in mid-2023, adopted by the Chevy Equinox EV later that yr, after which a mannequin for Hondain 2024, in keeping with AutoForecast Options LLC.

LG-Magna e-Powertrain known as GM its “foundational buyer” for the brand new manufacturing unit, saying it’ll play a “key function in GM’s journey to construct a powerful, scalable, sustainable and North America-focused EV provide chain.”

“The JV’s ongoing success will allow us to raised assist our clients with best-in-class elements for the following technology of electrical autos, and assist us to broaden our presence within the fast-growing world EV market,” LG-Magna CEO Cheong Received-suk mentioned in a press release.

Magna ranks No. 4 on the Automotive Information listing of the highest 100 world suppliers, with worldwide elements gross sales to automakers of $32.65 billion in 2020.

Hannah Lutz contributed to this report.