LG Energy Solution Breaks Through Toyota Japan... Annual 20GWh Battery Supply 'Largest Single Contract Ever'

Large-scale Long-term Electric Vehicle Battery Supply from 2025
Largest Single Order Contract Ever
4 Trillion Won Investment to Establish Dedicated Line at Michigan Plant

Current Status of LG Energy Solution's North American Production Plants. Data provided by LG Energy Solution

LG Energy Solution will supply the largest scale of batteries under a single order contract to Toyota, the world's number one automobile company. Japanese companies, which have been focusing on securing electric vehicle supply chains centered on domestic companies, are ultimately reaching out to LG Energy Solution, which possesses advanced battery technology and mass production capabilities.

On the 5th, LG Energy Solution announced that it had signed a large-scale long-term supply contract for electric vehicle batteries with Toyota Motor Corporation of Japan, amounting to 20GWh annually. With this contract, LG Energy Solution will supply batteries to all of the world's top five automakers (Toyota, Volkswagen, Renault-Nissan, Hyundai Motor, GM).

This contract is the largest single order contract for LG Energy Solution excluding joint venture (JV) factories. Modules equipped 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 4 trillion KRW in its Michigan plant in the United States from the end of this year through 2025 to establish a dedicated battery cell and module production line for Toyota.

The produced battery modules will be assembled into packs at Toyota's Kentucky plant in the United States and mainly installed in Toyota's new electric vehicle models.

LG Energy Solution Cells and Modules Combined with Toyota Pack Technology to Innovate Battery Safety and Performance

The two companies expect to produce batteries with enhanced safety and performance by combining LG Energy Solution's cell and module technology with Toyota's pack technology.

LG Energy Solution holds over 29,000 patents and has a global production capacity of 200GWh annually. In fact, LG Energy Solution has achieved meaningful results such as improving thermal management technology based on high-nickel NCMA for this collaboration. Toyota also demonstrates high-level battery pack technology based on its self-developed platform and manufacturing know-how of over 10 million vehicles annually.

Both companies expect that the innovative batteries combining their technologies will provide new momentum for Toyota electric vehicles in the North American electric vehicle market transition.

LG Energy Solution pouch long cell battery. Photo by LG Energy Solution

Tetsuo Ted Ogawa, CEO of Toyota Motor North America, stated, "Toyota aims to reduce CO₂ as quickly as possible and expand electric vehicle sales in North America. Securing a stable supply of lithium-ion batteries from a long-term perspective is an important part of manufacturing and product planning, and we are very pleased to collaborate with LG Energy Solution to provide products with high safety, performance, and quality that meet customer expectations."

Kwon Young-soo, Vice Chairman and CEO of LG Energy Solution, said, "The new collaboration between Toyota, the world's number one global automaker, and LG Energy Solution, a leading battery company, will be a major step forward in the North American electric vehicle market. Through this collaboration, we will further strengthen our North American production network and enhance innovative product competitiveness to provide the world's best customer value."

Securing North American Market Leadership through Collaboration with Global No.1 Toyota

This is the first time LG Energy Solution has formed a battery supply partnership with Toyota.

Toyota recorded sales of 371 trillion KRW last year and ranks first in global automobile sales volume. It is a traditional powerhouse in the automotive industry. It also holds significant influence in North America, ranking second in vehicle sales after GM. Recently, Toyota announced plans to launch 30 vehicle models by 2030 and sell 3.5 million electric vehicles annually in the global market, accelerating its electrification strategy.

LG Energy Solution currently operates and constructs two standalone plants and six joint venture plants in North America, continuously expanding its customer portfolio and global production capacity. As of the end of June this year, LG Energy Solution's cumulative order backlog stands at 440 trillion KRW.

This content was produced with the assistance of AI translation services.