Battery manufacturer LG Energy Solution will invest KRW4 trillion (~$3 billion) in its Michigan facility to establish new production lines for battery cells and modules exclusively for Toyota, with completion slated for 2025.

Under the contract, LG Energy Solution will supply 20 GWh of automotive battery modules consisting of high-nickel NCMA (nickel, cobalt, manganese, aluminum) pouch-type cells annually to Toyota’s motor manufacturing facility in Kentucky to be assembled into battery packs.

The innovative power solutions will support Toyota’s expanding line of battery power battery vehicles (BEVs), part of its multi-pathway product strategy, including a new model that will be assembled at Toyota Motor Manufacturing Kentucky in 2025.

The new battery modules will also help further Toyota’s vehicle electrification initiatives, as it aspires to offer 30 BEV models globally across its Toyota and Lexus brand nameplates and produce up to 3.5 million BEVs annually by 2030.

Tetsuo Ogawa, president and CEO of Toyota Motor North America, said, “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 achieving our manufacturing and carbon reduction plans. Working with LG Energy Solution, we are excited to be able to offer products that will provide the performance and quality our customers expect.”

LGES has eight battery manufacturing facilities operating or under construction in North America and intends to expand both its production network and supply chain in the region.

In May, LG Energy Solution and Hyundai Motor Group announced a joint venture to manufacture EV battery cells in the U.S. The joint venture will be in Bryan County, Savannah, Georgia.

Earlier, LG Energy Solution had announced plans to invest roughly KRW7.2 trillion (~$5.5 billion) to build a battery manufacturing complex in Arizona, U.S. The investment is more than four times the amount LG had initially announced to manufacture cylindrical EV batteries in the same location.