By Ben Otto

LG Electronics Inc. and Magna International Inc. will create a joint venture to build electric-car components, hoping to tap into growing global demand for electric vehicles.

The South Korean technology giant and Canada-based Magna said Wednesday that the venture would manufacture e-motors, inverters, on-board chargers and related e-drive systems.

The companies said the venture, tentatively named LG Magna e-Powertrain, will "support the growing global shift toward vehicle electrification" and accelerate both companies' growth in the electric powertrain market.

"Manufacturers need to be disruptive to maintain leadership positions in electrification and, through this deal, LG is entering a new phase in its automotive components business," said Kim Jin-yong, president of LG Electronics' vehicle-component-solutions unit. He said the venture "will transform the EV powertrain space faster than if we proceed alone."

The venture will include more than 1,000 employees at LG locations in the United States, South Korea and China. Financial details of the deal weren't disclosed.

Shares of LG Electronics jumped more than 20% to their highest level since March 2018 on early reports of the news.

The companies expect the transaction to conclude in July 2021.

Write to Ben Otto at ben.otto@wsj.com

(END) Dow Jones Newswires

12-22-20 2344ET