LG Energy Solution and Toyota Motor North America have signed a supply agreement for lithium-ion battery modules to be used in new Toyota BEVs assembled in the United States.
Through the agreement, LG Energy Solution will supply battery modules to Toyota at an annual capacity of 20 GWh beginning in 2025. These modules will consist of high-nickel NCMA (nickel, cobalt, manganese, aluminum) pouch and be manufactured at LG Energy Solution’s plant in Michigan.
The power solutions provided through the partnership will work to support Toyota’s BEV line-up, including a new BEV set to be assembled at the Toyota Motor Manufacturing Kentucky in 2025, and its key electrification initiatives. Here, it is looking to offer 30 BEV models globally across the Toyota and Lexus brand nameplates and produce up to 3.5 million BEVs annually by 2030.
In fulfilling its supply agreement, LG Energy Solution confirmed that it will invest KRW 4 trillion ($3 billion) into its Michigan plant to install new battery cell and module production lines exclusively for Toyota that it expects to be completed by 2025. The battery modules produced on these lines will initially be sent to Toyota’s Kentucky plant for assembly into battery packs and subsequently onto new Toyota BEVs.