Toyota Motor and LG Energy Solution has agreed to supply lithium-ion batteries for Toyota’s electric vehicles manufactured in the United States beginning in 2025. This collaboration is in response to significant investments in new electric vehicle battery facilities in North America, which have been fueled by the United States Inflation Reduction Act (IRA) and other U.S. laws that provide incentives to boost domestic manufacturing of electric vehicles, batteries, and essential materials.
LG Energy Solution will invest $3 billion in its battery factory in Holland, Michigan, to solely provide batteries to Toyota’s Kentucky plant through specialized manufacturing lines and also a participant in the Ultium battery joint venture, which is building a second $2.1 billion factory in Lansing, Michigan, to fulfill GM’s demand for electric vehicles.
However, according to the deal, LG Energy Solution will now provide batteries to five prominent automakers, including Stellantis, Hyundai, and Honda, through its jointly managed and completely owned North American plants.
There are now 37 battery facilities in the United States and Canada, with a total yearly manufacturing capacity of 1.3 terawatt-hours, enough to power over 10 million electric vehicles. According to Benchmark , China tops the worldwide battery production scene, with an estimated 291 current or planned battery plants and an annual production capacity of 6.1 terawatt-hours.
LG Energy Solution operates a Michigan facility. This capability is capable of producing more than 250,000 electric automobiles per year. Toyota’s Georgetown, Kentucky factory will then combine these modules into battery packs that will be put into its electric vehicles.
Toyota has claimed that it plans to build up to 3.5 million electric vehicles per year by 2030, as well as to launch 30 electric vehicle models internationally under both the Lexus and Toyota brands.
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