LG Energy Solutions has secured a new contract with Toyota Motor North America, supplying the Japanese automaker with lithium-ion batteries for US assembly. LG is investing $3 billion, expanding its Holland, Michigan production facility to begin manufacturing the batteries in 2025.
The lithium-ion batteries will be shipped to Toyota Manufacturing Kentucky for battery electric vehicle assembly.
Toyota's electrification strategy includes 30 BEV models, including its Lexus nameplate. The goal is to produce three and a half million BEVs annually by the year 2030.
The $3 billion Holland expansion is in addition to LG's current $1.7 billion expansion, adding 1.7 million square feet.