Toyota Motor and LG Energy Solution have signed an agreement to supply lithium-ion batteries to be used in the Japanese automaker’s U.S.-built electric vehicles starting in 2025.
LG Energy Solution (LGES) will invest $3 billion in its battery plant in Holland, Michigan, to supply Toyota’s Kentucky plant with battery cells from the awarded production lines. LGES will supply Toyota with 20 gigawatt hours of high-nickel NCMA battery cells and modules annually from the Michigan plant. The modules will be assembled into battery packs by Toyota in Georgetown, Kentucky, and installed in new electric vehicles.
The agreement with Toyota means LGES will now supply five leading automakers, including Stellantis, Hyundai and Honda, with batteries from its eight jointly owned and operated North American plants.
In August 2022, Toyota announced it would triple its investment in a new battery plant in North Carolina, which it will operate with longtime partner Panasonic as part of the Prime Planet Energy & Solutions joint venture, to $3.8 billion. The plant is expected to be operational in 2025.