LG Energy Solution Ltd. (LGES), South Korea’s leading car battery maker, said Thursday it has signed a 10-year deal with Toyota Motor Corp. to supply EV batteries that will be produced in the United States. (Image courtesy of LG Energy Solution)
SEOUL, Oct. 5 (Korea Bizwire) — LG Energy Solution Ltd. (LGES), South Korea’s leading car battery maker, said Thursday it has signed a 10-year deal with Toyota Motor Corp. to supply EV batteries that will be produced in the United States.
The two companies’ U.S. business units — LG Energy Solution Michigan, Inc. and Toyota Motor Engineering & Manufacturing North America, Inc. — signed the deal, LGES said in a statement.
It is the first time for the Korean battery firm to sign a battery supply contract with the Japanese carmaker.
For the deal, LGES will invest 4 trillion won (about US$3 billion) to build a 20 GWh battery plant in Michigan by 2025, with a plan to supply nickel-rich NCMA lithium ion batteries to Toyota for 10 years through 2035, the statement said.
LGES’ new NCMA (nickel, cobalt, manganese, aluminum) uses a 90 percent nickel cathode — reducing the use of cobalt and adopting aluminum for improved safety.
LGES’ battery cells produced in the upcoming Michigan plant will be delivered to Toyota’s Kentucky plant and be assembled there into battery packs for the carmaker’s EV models, the statement said.
With the latest supply deal, LGES has become a battery supplier to the world’s top five carmakers — General Motors Co., Toyota Motor, Hyundai Motor Group, Volkswagen Group, and Renault-Nissan alliance.
(Yonhap)
