LG Energy and Toyota Agree to Long-Term Battery Deal
PLANO, TX—LG Energy Solution and Toyota Motor North America Inc. have signed a long-term supply agreement. Starting in 2025, LG’s factory in Holland, MI, will produce lithium-ion battery cells and modules for use in all Toyota vehicles assembled in the United States. LG plans to invest $3 billion to expand its 12-year-old facility and establish new production.
“Our goal is to reduce carbon emissions as much as possible, as fast as possible,” says 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 [our] multi-pathway approach and growth plans in North America is critical to achieve our manufacturing and carbon reduction plans.”
According to Ogawa, the agreement brings together LG Energy Solution’s “proven capabilities in manufacturing top quality battery cells and modules at scale, and Toyota’s advanced technologies in battery packs, to create a product…which optimizes battery system performance….”
“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.”
The landmark deal represents LG Energy Solution’s largest single supply agreement outside of joint-venture initiatives. The company has eight battery manufacturing facilities currently operating or under construction in North America.
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