Toyota & LG Energy Solution Sign Battery Supply Agreement to Power EVs in the US

Toyota Motor North America, Inc. and LG Energy Solution have signed a supply agreement for lithium-ion battery modules to be used in Toyota battery electric vehicles (BEVs) that will be assembled in the United States. Under the contract, LG Energy Solution will supply automotive battery modules at an annual capacity of 20GWh starting from 2025.

The battery modules, consisting of high-nickel NCMA (nickel, cobalt, manganese, aluminum) pouch-type cells, will be manufactured in LG Energy Solution’s Michigan facility.

The supply agreement will support Toyota’s expanding line of BEVs, including a new BEV model that will be assembled at Toyota Motor Manufacturing Kentucky in 2025.

The company aims to offer 30 BEV models globally across its Toyota and Lexus brand nameplates, and produce up to 3.5 million BEVs annually by 2030.

To fulfill the supply agreement, LG Energy Solution will invest KRW 4 trillion (approximately USD 3 billion) in its Michigan facility to establish new production lines for battery cells and modules exclusively for Toyota, with completion slated for 2025.

Tetsuo 'Ted' Ogawa, president and CEO of Toyota Motor North America, says: “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. Working with LG Energy Solution, we are excited to be able to offer products that will provide the performance and quality our customers expect.”   

“We’re excited to have Toyota, the best-selling global automaker, as our new customer.  With our 30 years of experience in lithium-ion batteries, we will provide innovative power solutions to support Toyota’s push further into battery electric vehicles,” adds Youngsoo Kwon, CEO of LG Energy Solution. “The agreement also presents another big opportunity for us to strengthen our production capacity in North America, thereby bringing more real-life, large-scale progress toward electrification in the region.”

By 2025, Toyota’s plant in North Carolina will begin to manufacture automotive batteries for EVs.