Toyota has finally found a battery supplier in order to power its upcoming wave of electric vehicles in the US. Recently, LG Energy Solution and Toyota signed a deal to undergo a long-term battery supply agreement for forthcoming EV models that are fabricated in the US.
This agreement will take shape by 2025, and as a part of this agreement, LG Energy Solution will supply Toyota with 20 GWh of battery modules annually. As per this new supply agreement, the battery modules will be high nickel NCMA pouch-type cells. LG Energy Solution will finance approximately $3 billion into its Holland, Michigan, facility. In order to ascertain dedicated EV battery production lines for Toyota intended to boost supply.
Once done, the battery modules will be sent to Toyota Motor Manufacturing Kentucky. This is the automaker’s biggest manufacturing unit globally. The battery module will further be pieced together into battery packs and utilized to power new EVs in the US. The automaker disclosed in May that it would produce its first EV assembled in the US. While this is the three-row electric SUV at the facility. It will be one out of ten new Toyota EVs debuting globally by 2026. So far, Toyota has not disclosed any other details with respect to its new EV. It is expected to come by 2025, backed with the new supply agreement.
LG supplies batteries to the top five global automotive players
Ted Ogawa, president and CEO of Toyota Motor North America, put their views as the new supply agreement with LG is “critical” for its EV growth plans in the US. On the other hand, the supply deal being along is the largest from LG Energy apart of joint ventures. Apart from this, LG now supplies batteries to the top five global automotive players. Additionally, the company has eight production plants, that are operating or under construction in North America. Since it keeps on expanding its battery supply chain.
Toyota is all-around famous as a delayer in the EV era. While the automaker has freshly come up with its vision for the future. At the same time, the automaker also disclosed its plans to launch advanced EV batteries starting in 2026. This substantially enables the EVs to power with approx 500 miles of range, faster charging, and a lower cost.