Toyota and LG Energy Solution have partnered to drive the future growth of battery electric vehicles (BEVs) in the United States. The two global leaders have signed a supply agreement that will see LG Energy Solution providing 20GWh of high-nickel NCMA battery modules annually to power Toyota’s expanding line of BEVs. Let’s delve into the details of this significant collaboration and its implications for the electric vehicle industry.
Under the contract, LG Energy Solution, the third-largest electric vehicle battery producer globally, will supply automotive battery modules to Toyota starting from 2025. These modules consist of high-nickel NCMA (nickel, cobalt, manganese, aluminum) pouch-type cells and will be manufactured at LG Energy Solution’s Michigan facility. The innovative power solutions will support Toyota’s multi-pathway product strategy, including a new BEV model that will be assembled at Toyota Motor Manufacturing Kentucky in 2025.
Toyota’s Commitment to Electrification
Toyota has set ambitious goals for vehicle electrification. The company aims to offer 30 BEV models globally across its Toyota and Lexus brand nameplates by 2030, with an annual production target of up to 3.5 million BEVs. This long-term supply agreement with LG Energy Solution is a crucial step toward achieving these targets.
LG Energy Solution’s Investment
To fulfill the supply agreement, LG Energy Solution plans to invest approximately $3 billion (KRW 4 trillion) in its Michigan facility. The investment will establish new production lines exclusively for Toyota, ensuring a secure supply of lithium-ion batteries for the automaker. Completion of these production lines is slated for 2025.