LG Energy Solution and Toyota Partner for Electric Vehicle Battery Supply in the U.S.

In a significant move towards promoting electric vehicle (EV) adoption in the United States, LG Energy Solution and Toyota Motor North America, Inc. (Toyota) have inked a long-term supply agreement for lithium-ion battery modules. These batteries will power Toyota’s forthcoming battery electric vehicles (BEVs) assembled within U.S. borders.

Commencing in 2025, LG Energy Solution will provide Toyota with an annual capacity of 20 gigawatt-hours (GWh) of high-nickel NCMA battery modules. These modules will be manufactured at LG Energy Solution’s facility in Michigan. The partnership aims to bolster Toyota’s expanding lineup of BEVs, as the automaker aims to offer 30 BEV models globally under the Toyota and Lexus brand names and produce up to 3.5 million BEVs annually by 2030.

Toyota’s President and CEO, Tetsuo “Ted” Ogawa, emphasized the automaker’s commitment to carbon reduction and its need for a secure supply of lithium-ion batteries at scale to realize its BEV growth plans in North America. This agreement with LG Energy Solution aligns with Toyota’s multi-pathway product strategy for electrification.

To fulfill the supply agreement, LG Energy Solution is investing approximately USD 3 billion in its Michigan facility, establishing new production lines dedicated exclusively to Toyota. Completion of these production lines is expected by 2025. Initially, the battery modules will be shipped to Toyota Motor Manufacturing Kentucky for assembly into battery packs for BEVs.

This collaboration harnesses LG Energy Solution’s expertise in battery cell and module manufacturing and Toyota’s advanced battery pack technologies to optimize performance and enhance the EV customer experience. It also underscores LG Energy Solution’s commitment to battery safety, including thermal management for high-nickel NCMA batteries.

The CEO of LG Energy Solution, Youngsoo Kwon, expressed excitement about working with Toyota, stating that the partnership represents an opportunity to strengthen production capacity in North America and accelerate electrification in the region.

This landmark agreement marks LG Energy Solution’s largest single supply deal outside of joint ventures and reinforces its position as a leading supplier of batteries to the world’s top automakers.

Photos: TOYOTA

Source: LULOP