Toyota and LG Energy Solution have officially inked a supply agreement that will pave the way for the production of electric vehicles (EVs) in the United States. This collaboration, announced on a Wednesday, highlights the ongoing shift towards electrification in the automotive sector.
Under the agreement, LG Energy Solution, a renowned player in the battery industry, has committed to supplying Toyota with lithium-ion battery modules, specifically high-nickel NCMA battery modules, designed for use in the Japanese automaker’s upcoming battery electric vehicles. The targeted annual supply volume is an impressive 20 gigawatt-hours (GWh) of these advanced battery modules, with production scheduled to commence in 2025.
Crucially, these battery modules will be manufactured at LG Energy Solution’s state-of-the-art facility in Michigan, USA. In a substantial commitment to bolstering EV production capabilities, LG Energy Solution is set to invest approximately $3 billion into its Michigan facility. This substantial investment will be utilized to establish new production lines dedicated exclusively to the production of battery cells and modules intended for Toyota’s EV lineup. The completion of these production lines is anticipated by 2025.
This collaboration between Toyota and LG Energy Solution represents a significant step forward in the electrification journey of both companies. Toyota, a stalwart in the automotive industry, is making substantial strides in embracing electric mobility as it seeks to expand its EV portfolio. Meanwhile, LG Energy Solution, as a prominent battery manufacturer, is positioning itself as a key player in supporting automakers’ electrification ambitions.
The partnership also underscores the importance of securing a stable supply of advanced battery components as the demand for electric vehicles continues to rise globally. By establishing a robust supply chain through agreements like this one, automakers like Toyota are positioning themselves to meet the growing demand for electric vehicles while contributing to the broader goal of reducing greenhouse gas emissions in the transportation sector.
