While most people would have expected Foxconn, the number one iPhone assembly partner, to handle the EV production, a recent report citing people familiar with the matter reveals Apple is close to signing a deal with a new joint venture formed by LG Electronics and Magna International.
Only a few details are available right now, but it looks like LG would control 51 percent of the JV, while Magna would be in charge of the other 49 percent.
The discussions are still underway, but a decision should be made sooner rather than later, with the joint venture projected to be ready by July this year. The JV was originally announced in December last year.
At some level, Apple working together with LG makes total sense for two different reasons. First of all, Apple and the South Korean firm have already collaborated on the production of essential iPhone parts. In theory, LG is already included in the company’s partner network, which means it can easily meet its high standards and production requirements.
And second of all, LG has recently abandoned its mobile business, choosing instead to focus on other industry sectors, including EV parts. So working with Apple would help the company expand in this regard, especially as the Apple Car is seen as a pioneer in the EV world from a tech perspective.
According to the cited report, the first Apple Car prototype built by the LG-Magna joint venture is projected to see the daylight in 2024 at the earliest. That means the production-ready model should be finalized in 2025 or even later.