SEOUL, Dec. 23 (Yonhap) — LG Electronics Inc. said Wednesday it will launch an electric car parts joint venture worth about US$1 billion next year with Canadian auto parts company Magna International Inc. as it seeks to boost its presence in the auto parts industry.

The South Korean electronics giant said it will hold a 51 percent stake in the joint venture, with the rest owned by Magna International.

LG said it will first spin off its electric car parts business to create the new company, tentatively named LG Magna e-Powertrain Co., which will then be partly acquired by Magna International for $453 million.

The new joint venture will specialize in electric car motors and parts such as battery heaters.

LG said it plans to hold a shareholder meeting in March next year for approval of its plan and launch the joint venture in July.

The move comes after LG Electronics bought Austrian automotive lighting system firm ZKW Group in a deal worth 1.44 trillion won (US$1.3 billion) in 2018.

The tech giant’s shares on Wednesday rose as high as 30 percent, the daily limit, on the report.

This image, provided by LG Electronics Inc. on Dec. 23, 2020, shows a graphic of electric car parts. The company said the same day it will launch a electric car parts joint venture with Canadian auto-parts company Magna International Inc. next year. (PHOTO NOT FOR SALE) (Yonhap)