MUNICH -- LG Magna e-Powertrain, a joint venture between LG Electronics and Magna, will build its first European production plant in Hungary, the company announced Monday at the IAA mobility trade show held this week in Munich.

The 26,000-square-meter facility will be located within an industrial complex in Miskolc, a city in northeastern Hungary, adjacent to other Magna facilities and manufacturing clients in the region.

With the construction set to be completed in 2025, the new plant will start production of e-motors in 2026. A number of electrified powertrain solutions, including inverters and on-board chargers, are also expected to be produced in phases.

“Adding the new Hungary facility marks another milestone for the JV in executing its growth plan,” said Diba Ilunga, president of Magna Powertrain. “With this new capacity, LG Magna e-Powertrain is well positioned to keep pace with customer demands and increases in global EV production.”

According to LG, the production facility is expected to create roughly 200 new jobs in the region.

"Our new facility is a testament to the remarkable growth of LG Magna e-Powertrain, thanks to our strong partnership," Eun Seok-hyun, head of LG’s vehicle component solution division.

"The new facility aims to meet the demands of European automakers, demonstrating our commitment to delivering innovative solutions to our customers."

As the industry shifts toward vehicle electrification, the JV offers automakers a scalable portfolio including complete component solutions that enable electrification and functionality.

"This new facility seeks to amplify the growth of LG Magna e-Powertrain in the European market,” said Cheong Won-suk, CEO of LG Magna e-Powertrain.

“Along with the facilities in Mexico, China and South Korea, the facility in Hungary will be critical as the company accelerates its position as a go-to mobility solutions partner in the fast-growing global EV market.”

The company has also received strong support from both the Hungarian government and local authorities, the company said.