We know that giant automotive companies are trying to step into the electric vehicle world. Stepping up a gear in this regard, Toyota recently signed a battery agreement with LG. According to the contract, LG will take part in the battery production of some of Toyota’s factories.
$3 billion battery agreement from LG and Toyota
Toyota Motor Corporation has signed a major agreement for lithium-ion batteries from LG Energy Solution for its electric cars. Under the terms of the agreement, LG will invest $3 billion to expand production in the United States.
The additional capacity provided by LG will allow Toyota to supply battery cells and modules to other automotive factories in the United States starting from 2025. Under the agreement, Toyota will supply 20 gigawatt-hours of batteries from LG, enough to power more than 250 thousand electric vehicles per year.
LG’s batteries will be assembled into packages at Toyota’s various facilities, enabling the company to meet its goals of producing 3.5 million vehicles worldwide by 2030.
The deal marks a major partnership for Toyota, which is gearing up its electrification plans. It should be reminded that the Japanese manufacturer wants to offer 30 different electric car models by 2030. For LG, the deal allowed it to expand its customer base in the US to include five major automakers.
On the other hand, we reported in recent months that Toyota was working on a battery technology for the range problem. The solid-state battery, which can offer a range of 1199 kilometers and be fully charged in 10 minutes, will simplify the production process of both solid-state and liquid-based batteries.
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