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ToyotaUk

LG Energy Solution and Toyota Sign Long-term Battery Supply Agreement to Power Electric Vehicles in the U.S.

  • Two global leaders join forces to drive the future growth of battery electric vehicles in the U.S.
  • LG Energy Solution to supply Toyota with 20GWh of high-nickel NCMA battery modules annually from 2025.
  • Modules produced in LG Energy Solution’s Michigan facility to be used to power a new BEV model assembled in North America, at Toyota Motor Manufacturing Kentucky, among others.

SEOUL, Korea and PLANO, Texas (Oct. 4, 2023) – LG Energy Solution (KRX: 373220) and Toyota Motor North America, Inc. (Toyota) today announced that they have signed a supply agreement for lithium-ion battery modules to be used in Toyota battery electric vehicles (BEVs) that will be assembled in the United States.

Under the contract, LG Energy Solution will supply automotive battery modules at an annual capacity of 20GWh starting from 2025. The battery modules, consisting of high-nickel NCMA (nickel, cobalt, manganese, aluminum) pouch-type cells, will be manufactured in LG Energy Solution’s Michigan facility.

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

“At Toyota, our goal is to reduce carbon emissions as much as possible, as fast as possible,” said Tetsuo “Ted” Ogawa, president and CEO of Toyota Motor North America. “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 achieve 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.”

To fulfill the supply agreement, LG Energy Solution will invest KRW 4 trillion (approximately USD 3 billion) in its Michigan facility to establish new production lines for battery cells and modules exclusively for Toyota, with completion slated for 2025. Initially, the battery modules will go to Toyota Motor Manufacturing Kentucky to be assembled into battery packs and equipped onto BEVs.

The agreement brings together LG Energy Solution’s proven capabilities in manufacturing top quality battery cells and modules at scale, and Toyota’s advanced technologies in battery packs to create a product using LG Energy Solution’s innovative power solution which optimizes battery system performance, providing peace of mind and further enhancing the BEV customer experience. LG Energy Solution continues to enhance battery safety, including with respect to its thermal management for its high-nickel NCMA batteries.

“We’re excited to have Toyota, the best-selling global automaker, as our new customer. With our 30 years of experience in lithium-ion batteries, we will provide innovative power solutions to support Toyota’s push further into battery electric vehicles,” said Youngsoo Kwon, CEO of LG Energy Solution. “The agreement also presents another big opportunity for us to strengthen our production capacity in North America, thereby bringing more real-life, large-scale progress toward electrification in the region.”

The landmark deal represents LG Energy Solution’s largest single supply agreement secured outside of joint venture agreements. The company now supplies its batteries to all top five global automakers[1]. Based on its market leadership, the company has eight battery manufacturing facilities currently operating or under construction in North America, and continues to expand both its production network and supply chain in the region.

[1] Based on 2022 market sales

About LG Energy Solution

LG Energy Solution (KRX: 373220), a split-off from LG Chem, is a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. With 30 years of experience in revolutionary battery technology and extensive research and development (R&D), the company is the top battery-related patent holder in the world with over 25,000 patents. Its robust global network, which spans North America, Europe, Asia, and Australia, includes battery manufacturing facilities established through joint ventures with major automakers such as General Motors, Stellantis N.V., Hyundai Motor Group, and Honda Motor Co. Ltd. At the forefront of green business and sustainability, LG Energy Solution aims to achieve carbon neutral operations by 2050, while embodying the value of shared growth and promoting diverse and inclusive corporate culture. To learn more about LG Energy Solution’s ideas and innovations, visit https://www.lgensol.com.

About Toyota

Toyota (NYSE:TM) has been a part of the cultural fabric in North America for more than 65 years, and is committed to advancing sustainable, next-generation mobility through our Toyota and Lexus brands, plus our more than 1,800 dealerships.

Toyota directly employs more than 63,000 people in North America who have contributed to the design, engineering, and assembly of nearly 45 million cars and trucks at our 13 manufacturing plants. By 2025, Toyota’s 14th plant in North Carolina will begin to manufacture automotive batteries for electrified vehicles. With more electrified vehicles on the road than any other automaker, Toyota currently offers 26 electrified options. Learn more at: http://pressroom.toyota.com.

News

Slow August Marks the End of UK Car Production Growth

In August, car production in the UK experienced a decline, putting an end to six months of consecutive year-on-year growth. The decrease in production is attributed to the annual summer shutdowns and planned factory upgrades.

Last month, a total of 45,052 cars were produced, which is 31,399 fewer than July. August is traditionally known as the quietest month for car production.

Compared to the same period last year, there were 4,849 fewer cars produced, indicating a 9.7% decrease, according to data from the Society of Motor Manufacturers and Traders (SMMT).

During the summer, Stellantis’s Ellesmere Port facility was among the factories preparing for the production of next-generation vehicles. It recently reopened after undergoing a £100 million renovation to facilitate the manufacturing of electric vans for brands such as Citroën, Fiat, Opel, Peugeot, and Vauxhall.

However, there was some positive news in August. The production of electrified vehicles, which includes electric cars and various types of hybrids, continued to grow for the 14th consecutive month, with a 2.8% year-on-year increase. These vehicles accounted for 36% of all cars produced in August.

The largest decline in production was seen in cars destined for the domestic market, which decreased by 25.2% compared to the previous year, amounting to 8,010 cars. Additionally, export numbers, which made up 82.2% of total output for the month, also dropped by 5.5% to 37,042.

Before August, the UK car industry enjoyed six months of year-on-year growth, producing 69,707 cars in February, 81,605 in March, 66,527 in April, 76,046 in May, 84,767 in June, and 76,451 in July.

Overall, the UK has produced a total of 571,671 cars in 2023, indicating an 11.8% increase compared to the same period last year. This growth is largely attributed to a successful first half of the year, during which 450,168 cars were produced.

SMMT Chief Executive Mike Hawes reassured that the decline in August is not a cause for concern. He explained that car manufacturers utilize the summer holiday season to upgrade their plants in order to meet the demand for the next generation of electric vehicles. He also highlighted that a record number of these models are already being produced.

News

Verge Motorcycles to Restructure Management and Expand Globally

Verge Motorcycles, a Finnish company, has been preparing for growth and global expansion. The company believes its technology is well-developed and ready for expansion. Recently, it appointed Mark Wilson as its new CFO and is now making further changes to its management structure to accelerate global expansion.

In response to increasing demand worldwide, Verge Motorcycles has recruited two experienced individuals from the automobile sector to strengthen its production capacity. Alan Foster will serve as COO (Chief Operating Officer) while Haydn Baker will take on the role of CPO (Chief Product Officer). The company’s innovative technology and design have captured the interest of motorcycle and electric mobility enthusiasts around the world. The rising demand has resulted in a significant number of orders, prompting Verge to plan its entry into the US market in 2023. Foster and Baker will play crucial roles in Verge Motorcycles’ ongoing growth initiatives.

Alan Foster, who has over four decades of experience in the automotive sector, has taken on the position of Chief Operating Officer at Verge Motorcycles. He previously held various management positions at McLaren Automotive for more than 15 years. Notably, Foster played a key role in establishing a manufacturing technology center responsible for producing all of McLaren’s road vehicles, which also became a popular tourist attraction for the brand.

“Verge is in a very exciting phase of growth, and the potential is genuinely huge,” said Foster in an article by Powersports Business. “I believe my experience with scaling low-volume luxury products like McLaren will benefit Verge tremendously. What fascinates me most about Verge is its unique, game-changing technology, which inverts traditional technical solutions with its simplicity,” he concluded.

In recent years, Foster has worked as an industry consultant, collaborating with prominent automotive OEMs through his independent company. In his new role at Verge, his responsibilities will include expanding production capacity, enhancing quality control measures, and optimizing overall operations.

Meanwhile, Haydn Baker, an experienced figure in the automotive sector, brings valuable knowledge to his role as Verge Motorcycles’ Chief Product Officer. Baker has extensive experience in the electric car field, having worked in key positions at McLaren Automotive for a decade and with American electric car maker Rivian for a period of time. At Verge Motorcycles, Baker will manage the product development program, improve engineering procedures and standards, and ensure scalability in product selection. His experience in both traditional and electric automobiles makes him well-suited for this important role.

“We have made significant progress in the past year and established our position in the industry,” said Tuomo Lehtimäki, CEO of Verge, in an article by Powersports Business. “Ensuring production capacity and quality are essential as we continue to enter new markets. To achieve success, growth requires the right people above all else, and it is an honor to have industry veterans like Alan and Haydn as part of our team. The experience and expertise they bring are truly invaluable to us,” he continued.