Toyota, LG Sign Long Term Deal For Lithium-ion Battery Modules

LG Energy Solution and Toyota announced that they 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 20 GWh starting in 2025. The battery modules, consisting of high-nickel NCMA (nickel, cobalt, manganese, and aluminium) pouch-type cells, will be manufactured in LG Energy Solution’s Michigan facility.

To fulfil 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. Initially, the battery modules will go to Toyota Motor Manufacturing Kentucky to be assembled into battery packs and equipped onto BEVs.