However, Toyota’s involvement with LG Energy Solution differs from the latter’s traditional EV business models. While the abovementioned deals were joint ventures, the deal with Toyota puts LG as a supplier instead.
Under this agreement, LG Energy Solution will provide Toyota with 20 gigawatt-hours of high-nickel NCMA (nickel, cobalt, manganese, aluminum) battery modules annually, starting in 2025. These modules will be manufactured at LG Energy Solution’s Michigan facility, receiving an approximate $3 billion investment to establish new production lines for battery cells and modules dedicated to Toyota’s EV requirements.
The newly produced battery modules will be shipped to Toyota Motor Manufacturing in Kentucky, where they will be assembled into battery packs and integrated into electric vehicles.
