Diversified supplier Magna International Inc. said today it expects to generate US$2.5 billion in annual revenue from electric vehicle battery enclosures by 2027, up from US$100 million in 2022.
Diversified Canadian supplier Magna International Inc. said Thursday it expects to generate $2.5 billion in annual revenue from electric vehicle battery enclosures by 2027, up significantly from just $100 million in 2022.
The battery enclosures business"has exceeded initial expectations," Magna CEO Swamy Kotagiri said during a virtual presentation to investors."We're establishing a strong market presence in key regions and building a competitive mode, a strategy similar to the truck frame business that we initiated throughout North America in the late 1980s."
Magna also updated its 2023 and 2025 financial outlooks to reflect the acquisition of Veoneer Active Safety this year. It expects sales of between $41.9 billion and $43.5 billion this year, up from a previous estimate of $40.2 billion and $41.8 billion. It expects 2025 sales of between $46.7 billion and $49.2 billion, up from between $44.7 billion and $47.2 billion.
The company also anticipates its electric powertrain sales to rise at about 35 percent annually to about $4 billion in 2027, compared with around $800 million in 2022. The $4 billion estimate for 2027 is lower than the $4.5 billion Magna had anticipated by then in 2022, a dip the company said is the result of foreign exchange.