LG and Toyota Sign Long-Term Battery Agreement

...

LG Energy Solution and Toyota North America have signed a supply agreement for lithium-ion battery modules for electric vehicles. The agreement has LG supplying automotive battery modules at an annual capacity of up to 20 gigawatt hours starting from 2025. The batteries will be used in Toyota-made vehicles to be assembled and sold in North America.

The battery modules are high-nickel NCMA (nick, cobalt, manganese, aluminum) pouch-type cells and will be manufactured at LG’s facility in Michigan. These are to support Toyota’s growing battery electric vehicle lineup going forward. Toyota has previously announced new models to be made in both Texas and Kentucky. Toyota is aiming for 30 battery-electric models by 2030.

To meet its end of the supply agreement, LG will be investing about $3 billion into its Michigan plant to add production lines for battery cells and modules exclusively for Toyota. Initially, those cells will be shipped to Toyota’s Kentucky plant to be assembled into battery packs.

This deal marks the largest single supply agreement LG has secured outside of joint ventures. LG is now supplying batteries to all five of the top global automakers and owns eight battery manufacturing facilities that are operating or under construction in North America.

...