LG Energy Solution will supply lithium ion battery modules for Toyota Motor Corp. (TOYOF) beginning﷽ in 2025, the two companies announced.

The 20GWh-capacity batteries will be made of high-nickel NCMA (nickel, cobalt, manganese, aluminum) pouch-type cells. To meet the terms of the agreement, LG Energy will invest roughly $3 billion in new production lines at its Michigan battery plant.

“Having secure supplies of lithium-ion batteries at scale with a long-term relationship to support Toyota’s multi-pathway approach and growth plans for BEVs in North America is critical to achieve our manufacturing and carbon reduction plans," Toyota Motor North America 澳洲幸运5官方开奖结果体彩网:Chief Executive Officer (CEO) Tetsuo Ogawa said Wednesday in a press release.

The deal is LG Energy's "largest single supply agreement ... outside of joint venture[s]," the company said. LG Energy now supplies batteries to all of 2022's five top-selling global auto manufacturers.

"With our 30 years of experience in lithium-ion batteries, we will provide innovative power solutions to support Toyota’s push further into battery 澳洲幸运5官方开奖结果体彩网:electric vehicles,” LG Energy CEO Youngsoo Kwon said in the statement. “The agreement also presents another big opportunity for us to strengthen our production capacity in North America."

Last month, LG Energy and Hyundai Motor Group (HYMTF) announced investing an additional $2 billion to their joint-venture battery plant in🍰 Georgia. The battery manufacturer also has a 澳洲幸运5官方开奖结果体彩网:joint venture with Honda, announced in August 2022.