Toyota Signs Deal with LG Energy to Supply Batteries for Electric Vehicles

Alexi Falson

Toyota has confirmed it has signed a landmark deal with Korean electronics giant, LG, that will see LG’s lithium-ion battery modules used for Toyota’s vehicles manufactured in the U.S.LG says that it will invest an additional $3 billion into its Michigan-based battery production facility, which will be dedicated to producing battery cells and modules exclusively for Toyota.

LG’s plant in Michigan is expected to come online in 2025, with Toyota hoping for around 20GWh of high-nickel NCMA battery packs from that point onward.

That added battery capacity will play a key role in Toyota’s electric vehicle expansion, with the company hoping to introduce no less than 30 battery-electric vehicles across its core brand and luxury arm, Lexus, by 2023.All up, Toyota says it is aiming to produce 3.5 billion EVs by 2030.

“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,” says Tetsuo Ogawa, Toyota’s North American Chief.“Working with LG Energy Solution, we are excited to be able to offer products that will provide the performance and quality our customers expect,” he added.

In the past, LG has signed massive deals to supply Tesla with battery packs, as well as manufacturing agreements with giants like Stellantis and Honda that would see battery production lines worth billions of dollars constructed in the U.S.

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