Apple is reportedly close to signing a deal with LG and Magna for the development of Apple Car. LG has a joint venture with Canada-based Magna International tentatively called “LG Magna e-Powertrain.”

The report from Korea Times cites “a source familiar with the issue” that “LG Magna e-Powertrain is very near to signing contracts with Apple under which they could handle the initial volume production of Apple EVs.”

The source further claims that since various LG affiliates like LG Display, LG Chem, and LG Innotek are already a part of Apple’s supply chain, the company will not have to worry about any supply chain issues. These “LG affiliate are qualified to guarantee production yields and faster delivery of parts needed for Apple EVs.”

LG will have a 51% stake in the “LG Magna e-Powertrain” JV, with Magna owning the remaining 49%. The company will be making e-motors, inverters, and onboard chargers. LG already supplies battery packs, motors, and other components to Tesla and General Motors for their EVs.

LG recently announced its exit from the smartphone business, and it is under pressure from investors to further grow its business. Thus, LG partnering with Apple for Apple Car would give its reputation and brand image a huge boost.

The report further states that once all the production details are sorted out, a prototype Apple Car will be teased in early 2024. Reliable Apple analyst Ming-Chi Kuo had previously claimed that the Apple Car is still at least half a decade away from launch.

Apple was previously rumored to partner with Hyundai or its subsidiary Kia to manufacture the Apple Car. However, after intense leaks and speculations, the partnership talks between the two companies fell through.