PLANO, Texas–LG Energy Solution and Toyota Motor North America Inc. today announced that they have signed a supply agreement for lithium-ion battery modules to be used in Toyota battery electric vehicles that will be assembled in the United States.
Under the contract, LG Energy Solution will supply automotive battery modules at an annual capacity of 20 gigawatt hours starting in 2025. The battery modules, consisting of high-nickel NCMA (nickel, cobalt, manganese, aluminum) pouch-type cells, will be manufactured in LG Energy Solution’s Michigan plant in Holland.
The batteries will support Toyota’s expanding line of BEVs, including a new BEV model that will be assembled at Toyota Motor Manufacturing Kentucky in 2025. They will also help further Toyota’s vehicle electrification initiatives, as it aspires to offer 30 BEV models globally across its Toyota and Lexus brand nameplates and produce up to 3.5 million BEVs annually by 2030.
“At Toyota, our goal is to reduce carbon emissions as much as possible, as fast as possible,” said Tetsuo “Ted” Ogawa, president and CEO of Toyota Motor North America. “Having secure supplies of lithium-ion batteries at scale with a long-term relationship to support Toyota’s multi-pathway approach and growth plans for BEVs in North America is critical to achieve our manufacturing and carbon reduction plans. Working with LG Energy Solution, we are excited to be able to offer products that will provide the performance and quality our customers expect.”
To fulfill the supply agreement, LG Energy Solution will invest approximately $3 billion at its Michigan plant for new production lines for battery cells and modules exclusively for Toyota, with completion slated for 2025. Initially, the battery modules will go to Toyota Motor Manufacturing Kentucky to be assembled into battery packs and equipped onto BEVs.
“We’re excited to have Toyota, the best-selling global automaker, as our new customer,” said Youngsoo Kwon, CEO of LG Energy Solution. “With our 30 years of experience in lithium-ion batteries, we will provide innovative power solutions to support Toyota’s push further into battery electric vehicles. The agreement also presents another big opportunity for us to strengthen our production capacity in North America, thereby bringing more real-life, large-scale progress toward electrification in the region.”
The deal represents LG Energy Solution’s largest single supply agreement secured outside of joint venture agreements. The company now supplies its batteries to all top five global automakers. The company has eight battery manufacturing facilities currently operating or under construction in North America, and continues to expand both its production network and supply chain in the region.
LG Energy Solution supplies lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. It has 30 years of experience in battery technology and more than 25,000 patents. It has battery supply agreements with General Motors, Stellantis N.V., Hyundai Motor Group, and Honda Motor Co. Ltd. LG Energy Solution aims to achieve carbon neutral operations by 2050. More at https://www.lgensol.com.
Toyota (NYSE: TM) employs more than 63,000 people in North America in 13 manufacturing plants and more than 1,800 dealerships. By 2025, Toyota’s 14th plant in North Carolina will begin to manufacture automotive batteries for electrified vehicles. With more electrified vehicles on the road than any other automaker, Toyota currently offers 26 electrified options. Learn more at: http://pressroom.toyota.com.