LG Energy Solution is entering the fast-growing North American electric vehicle market with Toyota, the world's No. 1 automaker.
On October 5, LG Energy Solution announced that it has signed a large-scale long-term supply contract with Toyota Motor Corporation of Japan for 20GWh of electric vehicle batteries per year.
This is LG Energy Solution's largest single order outside of joint ventures (JVs). Modules with high-nickel NCMA (nickel-cobalt-manganese-aluminum) based pouch cells will be supplied.
To this end, LG Energy Solution plans to invest a total of KRW 4 trillion from the end of this year to 2025 to build a dedicated battery cell and module production line for Toyota at its Michigan plant in the US.
By combining LG Energy Solution's cell and module technology with Toyota's pack technology, the two companies expect to produce batteries with enhanced safety and performance, and to sell electric vehicles that customers can drive with confidence.
LG Energy Solution boasts the world's leading technology and mass production capabilities in battery cells and modules, including more than 29,000 patents and a global production capacity of 200 GWh per year. In fact, LG Energy Solution has made significant achievements in this collaboration, such as improving its high-nickel NCMA-based thermal control technology.
Toyota has also demonstrated a high level of battery pack technology based on its own platform and know-how in manufacturing more than 10 million cars per year.
The two companies believe that the innovative batteries that combine their technologies will enable Toyota to provide new momentum in the transformation of the North American electric vehicle market.
"Securing a stable supply of lithium-ion batteries over the long term is an important part of our manufacturing and product planning, and we are very pleased to be working with LG Energy Solution to deliver products with high safety, performance and quality that meet our customers' expectations," said Tetsuo Ted Ogawa, CEO of Toyota Motor North America.
"This new collaboration between Toyota, the world's No. 1 global automaker, and LG Energy Solution, a leading battery company, is a major step forward for the North American EV market," said Young-Soo Kwon, Vice Chairman and CEO of LG Energy Solution.
With this agreement, LG Energy Solution will supply batteries to all of the top five global automakers (Toyota, Volkswagen, Renault Nissan, Hyundai Motor and GM). In particular, this large-scale supply contract is another opportunity for the company to gain an overwhelming competitive advantage in the North American EV market.
