October 11, 2023: LG Energy Solution is investing around $3 billion to expand battery production at its Michigan plant to support a new landmark supply deal for Toyota electric vehicles.
The firms said on October 5 that LGES is to provide 20GWh annually of its high-nickel NCMA long cell pouch-type batteries starting in 2025.
LGES will build new production lines for battery cells and modules at the Holland, Michigan facility exclusively for Toyota — following what the South Korea-based battery maker said is its largest single supply agreement outside of joint venture deals.
An LGES spokesperson told Energy Storage Journal on October 10 the new financial commitment is in addition to the $1.7 billion already pledged for the expansion of the battery plant in Holland, Michigan.
In May, LGES held a topping out ceremony (pictured) marking the completion of the structural steel framework for the expanded section of the plant.
LGES’s current annual production capacity at the site is 5GWh and will increase to 25GWh when the expansion is finished next year and mass production starts in 2025, the spokesperson said.
LGES has a total of eight battery manufacturing facilities either operating or under construction in North America.
Toyota Motor North America president and CEO Tetsuo Ogawa said securing supplies at scale of lithium battery tech was key to the auto giant’s expansion of its electric vehicles production and sales across the region.
Energy Storage Journal reported last month that LGES had raised $1bn through its first global green bond issue, to be invested in its global battery production facilities.