Toyota to source EV battery modules from LG Energy Solution

MANILA: Toyota Motor North America Incorporated inked a supply agreement with LG Energy Solution for the lithium ion battery modules that will be used in the carmaker's battery electric vehicles (BEV).

Beginning in 2025, LG will supply 20 gigawatt hours of automotive battery modules per year. The battery modules will consist of nickel, cobalt, manganese, and aluminum pouch-type cells, which will be produced in LG's plant in Michigan.

This partnership will support Toyota's multi-pathway product strategy, which includes a new BEV model that will be manufactured at Toyota Motor Manufacturing Kentucky in 2025. This will also contribute to the Japanese carmaker's electrification initiatives, as it targets to offer 30 BEV models globally for both the Toyota and Lexus brands and produce up to 3.5 million BEVs per year by 2030.

"At Toyota, our goal is to reduce carbon emissions as much as possible, as fast as possible. 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 achieve our manufacturing and carbon reduction plans. Working with LG Energy Solution, we are excited to be able to offer products that will provide the performance and quality our customers expect," Toyota Motor North America President and Chief Executive Officer Tetsuo Ogawa stated.

The partnership combines Toyota's modern battery pack technologies with LG's expertise in battery cell and module production.

"We're excited to have Toyota 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 BEVs," LG Energy Solution Chief Executive Officer Youngsoo Kwon said.

"The agreement represents 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," he added.

Photos from Toyota Motor North America Incorporated

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