LG Energy Solution of South Korea signed an agreement with car maker Toyota Motor North America to supply lithium-ion battery modules for use in electric vehicles (EVs) to be assembled in North America.
The deal entails LGES investing some $3 billion in its Michigan plant to set up new battery production lines exclusively for Toyota. Completion is set for 2025.
The deal is LGES’s largest single supply agreement secured outside joint venture agreements, it said. “The company now supplies its batteries to all top five global automakers,” it said, referring to 2022 sales. The company has eight battery manufacturing facilities currently operating or under construction in North America, and continues to expand both its production network and supply chain in the region.