LG Energy Solution (LGES) and Toyota signed a battery supply deal for electric vehicles produced in the United States. LGES will supply Toyota with NCMA Long Cell pouch-type batteries.
The agreement stipulates that LGES will supply Toyota with 20 GWh of high-nickel NCMA battery modules annually beginning in 2025. The South Korean battery supplier will produce Toyota’s NCMA battery modules at its new Michigan facility. The Japanese automaker plans to equip the LGES battery modules in electric vehicles built at the Toyota manufacturing facility in Kentucky.
“At Toyota, our goal is to reduce carbon emissions as much as possible, as fast as possible,” said the President and CEO of Toyota Motor North America, Tetsuo “Ted” Ogawa.
“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 achieving 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,” Ozawa added.
Last month, Toyota announced its aim to produce 600,000 battery electric vehicle units by 2025. The recent LGES supply deal is a step toward Toyota’s goal. As part of the agreement, LGES will invest $3 billion in its Michigan battery facility to establish cell and module production lines exclusively catering to Toyota’s needs. The new production lines are expected to be complete by 2025.
In May 2023, Toyota affirmed its commitment to electrification by unveiling a three-row battery electric SUV in Kentucky. The Japanese automaker announced that production of the new electric SUV would start by 2025 in Kentucky. It also shared that the batteries for the three-row all-electric SUV would come from Toyota’s battery manufacturing plant in North Carolina.
The legacy automaker planned to invest an additional $2.1 billion in the new battery facility in North Carolina called the Liberty plant—for the production of the three-row electric SUV. The Liberty plant is expected to start production by 2025 with six battery assembly lines, four dedicated to hybrid EVs and two focused on cells for battery electric vehicles (BEVs).