Mubasher: South Korea-based LG Electronics and automotive supplier Magna International are launching a joint venture (JV) valued at $1 billion that will make key components for electric cars, CNBC reported.

The JV, tentatively called LG Magna e-Powertrain, will manufacture e-motors, inverters, and onboard chargers. LG will own 51% of the new company and Magna will own 49%, LG Electronics said.

The deal expands a wave of consolidation among suppliers looking to capture a growing market for electric vehicles, e-axle systems, which combine electric motors, power controls, and driving gears in one unit.

The transaction is expected to close in July 2021 pending LG shareholder approval, among other conditions, and will employ 1,000 people at LG locations in the US, Seoul, and China.

LG has previously supplied motors, battery packs, and other components to GM’S Bolt EV and Magna already makes electronic vehicle gear for companies including Volkswagen.