Magna spends to build battery enclosures for Chevy Silverado EV

Magna International Inc. will supply battery enclosures for the 2024 Chevrolet Silverado EV out of its new electric-vehicle parts plant in southeast Michigan, North America's largest parts supplier said today.

Magna will build the enclosures at its new factory in St. Clair, Mich., about 50 miles north of Detroit, where the supplier already builds enclosures for the GMC Hummer EV. Production on Silverado enclosures is expected to begin later in the year when Magna finishes adding 740,000 square feet to the plant.

The expansion is part of a $530 million investment in its metro Detroit footprint. Magna said last year that a coming addition to the plant would add 900 workers.

The new program is significant for the diversified Magna as it works to boost its electrification business. Last week, Magna blamed high costs related to its new EV business, as well as costs related to advanced driver assistance systems and other factors, for its disappointing fourth-quarter earnings, which fell 80 percent from a year earlier and sent its stock price tumbling.

"The accelerating shift toward vehicle electrification opens up exciting growth opportunities for Magna beyond powertrain," said John O'Hara, president of Magna's body and chassis group, in a statement. "We have been able to leverage our expertise to supply battery enclosures — a product for which we see strong potential going forward."

In a news release, Magna said its battery enclosures, which house high-voltage batteries and other important EV components, can be made in steel, aluminum or multi-material configurations, including lightweight composites in order to "meet the individual needs of its customers."

Magna ranks No. 4 on the Automotive News list of the top 100 global suppliers, with worldwide parts sales to automakers of $36.2 billion in 2021.