Toyota, the world’s largest automaker, has signed an agreement with South Korea’s LG Energy Solution to supply lithium-ion batteries for its electric vehicles that will be assembled in the U.S.
The deal will support Toyota’s ambitious plan to offer 30 battery-electric vehicle models across its Toyota and Lexus brands and produce up to 3.5 million BEVs annually by 2030.
The batteries will be used for a new electric vehicle model that Toyota will assemble at its Kentucky plant, which is its largest manufacturing facility globally, starting in 2025. Toyota has been the world’s top-selling automaker for three consecutive years, having sold nearly 10.5 million vehicles in 2022. The news of the partnership boosted Toyota’s shares, which rose 2.91% in morning trading Thursday.
LG Energy Solution is one of the leading battery makers in the world, supplying other automotive giants such as General Motors, Hyundai, and Honda. In January, LG Energy Solution announced that it will build a $4.3 billion EV battery plant in the U.S. with Hyundai, in a bid to leverage tax credits.
The partnership between Toyota and LG Energy Solution is expected to enhance the competitiveness of both companies in the fast-growing electric vehicle market, as well as contribute to the reduction of greenhouse gas emissions and the promotion of clean energy.
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