NAGOYA, Japan/SEOUL — Toyota Motor is accelerating its effort to build a new supply chain for electric-vehicle batteries, reducing its dependence on its own group. The Japanese auto giant announced on Thursday that it has signed a contract with South Korea’s LG Energy Solution to supply lithium-ion batteries, which will be used for EVs that Toyota will produce in North America from 2025.
Japanese automakers have built up keiretsu systems of businesses tied together via cross-held shares. The automakers stand atop their pyramids and procure components and materials from within their groups. However, the rapid shift to EVs has brought them to a turning point.