LG Energy and Toyota sign battery deal ensuring seamless supply of NCMA pouch-type cells for US EVs

Toyota Motor North America and LG Energy Solution have entered into a supply agreement for lithium-ion battery modules which will power Toyota's new battery electric vehicles (BEVs) in the United States. Starting from 2025, LG Energy Solution will provide Toyota with 20GWh of high-nickel (nickel, cobalt, manganese, aluminium) NCMA battery solutions annually.

These modules will be produced at LG Energy Solution's Michigan facility and used to assemble the new BEV model at Toyota Motor Manufacturing Kentucky. According to the agreement, LG Energy Solution has been chosen to provide automotive battery modules with an annual capacity of 20GWh, starting from the year 2025. These battery modules will be produced in LG Energy Solution’s facility located in Michigan and will include high-nickel NCMA pouch-type cells.

These novel power solutions will assist Toyota in expanding its line of BEVs and support its multi-pathway product strategy, including a new BEV model that will be assembled at Toyota Motor Manufacturing Kentucky in 2025. Additionally, they will further Toyota’s vehicle electrification initiatives, as the company aims to offer 30 BEV models globally under its Toyota and Lexus brand names and produce up to 3.5 million BEVs annually.

LG Energy Solution has recently announced its plans to invest KRW 4 trillion (approximately US$ 3 billion) in its Michigan facility to establish new production lines for battery cells and modules exclusively for Toyota. The completion of this project is set for 2025. Initially, the battery modules produced will be assembled into battery packs and equipped onto BEVs at Toyota Motor Manufacturing Kentucky.

The CEO of LG Energy Solution, Youngsoo Kwon, specified: “We’re excited to have Toyota, the best-selling global automaker, as our new customer.  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.”

“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,” Kwon added.

This partnership between LG Energy Solution and Toyota brings together LG Energy Solution’s expertise in manufacturing top-quality battery cells and modules, and Toyota’s advanced technologies in battery packs, to develop a product that optimises battery system performance, providing peace of mind and enhances the BEV customer experience.

This agreement represents LG Energy Solution’s largest single supply agreement secured outside of joint venture agreements. The company has established itself as a leader in the market, supplying batteries to all top five global automakers. At present, it has eight battery manufacturing facilities operating or under construction in North America, and continues to expand both its production network and supply chain in the region.