Toyota and LG Energy Solution have signed a $3 billion battery supply deal to support Toyota’s electric vehicle (EV) production in the United States. The deal is the largest single investment in EV battery production in the U.S. to date.
Under the terms of the deal, LG Energy Solution will invest $1.4 billion to expand its battery cell manufacturing plant in Holland, Michigan. The plant will produce lithium-ion battery cells for Toyota’s EVs, starting in 2025.
Toyota will also invest $1.6 billion to build a new battery pack assembly plant in Kentucky. The plant will assemble battery packs from the cells produced at LG Energy Solution’s Michigan plant.
The two companies say that the deal will create more than 1,800 new jobs in the United States.
The deal is a major coup for the Biden administration, which has made supporting the EV industry a central part of its economic agenda. The administration has set a goal of having half of all new car sales in the U.S. be electric by 2030.
The deal is also a sign of the growing importance of the EV market in the United States. EV sales in the U.S. have been growing rapidly in recent years, and are expected to continue to grow in the coming years.
Toyota and LG Energy Solution are two of the world’s leading companies in the EV battery industry. Toyota is one of the largest automakers in the world, and LG Energy Solution is one of the largest battery cell manufacturers in the world.
The deal between the two companies is a significant step forward for the EV industry in the United States. It will help to create jobs, boost the economy, and reduce greenhouse gas emissions.