Oct. 5 (UPI) — LG Energy and Toyota have recently announced a long-term agreement to supply batteries for electric vehicles (EVs) in the United States.
As per the agreement, LG will provide Toyota with 20GWh of high-nickel NCMA battery modules starting in 2025.
These batteries will be manufactured by LG Energy in Michigan and will be used in Toyota vehicles, including those produced in Kentucky, from 2025 onwards.
Toyota intends to utilize this battery deal to support various initiatives, aiming to offer 30 EV models in the U.S. and global markets.
Tetsuo “Ted” Ogawa, the President and CEO of Toyota Motor North America, stated, “At Toyota, our objective is to reduce carbon emissions as quickly as possible. Having a stable supply of lithium-ion batteries at scale with a long-term partnership to support Toyota’s multi-pathway approach and growth plans for battery electric vehicles (BEVs) in North America is crucial in achieving our manufacturing and carbon reduction goals.”
LG Energy plans to invest around $3 billion in its Michigan battery facility to establish new battery production lines exclusively for Toyota.
Youngsoo Kwon, the CEO of LG Energy Solution, expressed excitement about having Toyota, the best-selling global automaker, as their new customer. Kwon added, “With our 30 years of experience in lithium-ion batteries, we will provide innovative power solutions to support Toyota’s further expansion into battery electric vehicles.”
The LG Energy-Toyota EV battery deal marks LG’s largest supply agreement apart from joint venture agreements. LG currently operates or is constructing eight North American battery manufacturing plants.
In September, Hyundai Motor and LG announced an increased investment of $2 billion, bringing the total planned investment in battery production in Bryan County, Ga. to $4.3 billion.
These investments will create a total of $7.59 billion and generate 8,500 jobs in the region over the next eight years.
Once these projects are completed in 2028, the battery plants will support the production of approximately 300,000 EVs per year.
