LG Energy Solution and Toyota have signed a long-term battery supply agreement to power EVs in the US

LG Energy Solution and Toyota Motor North America, Inc. announced a supply agreement for lithium-ion battery modules to be utilised in Toyota battery electric vehicles (BEVs) built in the United States. Starting in 2025, LG Energy Solution will supply vehicle battery modules with an annual capacity of 20GWh under the deal. LG Energy Solution’s Michigan factory will produce the battery modules, which will be made up of high-nickel NCMA (nickel, cobalt, manganese, aluminium) pouch-type cells.

Toyota’s increasing range of BEVs will benefit from the novel power solutions, which are part of the company’s multi-pathway product strategy, including a new BEV model that will be manufactured at Toyota Motor Manufacturing Kentucky in 2025. They will also support Toyota’s vehicle electrification plans, as the company aims to provide 30 BEV models globally across its Toyota and Lexus brand nameplates by 2030, as well as generate up to 3.5 million BEVs yearly.

“At Toyota, our goal is to reduce carbon emissions as much as possible, as fast as possible,” stated Tetsuo “Ted” Ogawa, president and CEO of Toyota Motor North America. “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.”