Following a Joint Venture Deal with Honda
LG Energy Solution will supply batteries for electric vehicles to Toyota of Japan, the world’s No. 1 player in car sales. The Korean battery maker also signed a battery supply deal with Japan's Honda earlier this year.
LG Energy Solution is in talks with Toyota over the supply of batteries produced at its plant in the United States to Toyota’s U.S. plant. It plans to sign an MOU for battery supply within this year.
As a result, LG Energy Solution will supply batteries to nine of the top 10 global automakers. They are Volkswagen, Renault Nissan, Hyundai Motor, Kia, Stellantis, GM, Ford, BMW and Honda.
In August, it agreed with Honda to build a joint battery plant in Ohio in the United States by investing a total of 5.1 trillion won (US$4.4 billion).
With the implementation of the Inflation Reduction Act (IRA) in the United States, securing locally produced batteries has become a must for automakers. The U.S. EV battery market is expected to grow rapidly from 64GWh in 2021 to 143GWh in 2023 and 453GWh in 2025, according to market research firm SNE Research. Its average annual growth rate is projected to hit 63 percent.
LG Energy Solution will invest more than 20 trillion won to expand its production capacity in North America. It plans to operate battery plants jointly with GM and Stellantis or on its own. Its production capacity in North America will reach 255GWh in 2025. This amount can be used to produce more than three million high-performance pure electric vehicles that can run more than 500 kilometers on a single charge.