Michigan will see about $3 billion in investment from LG Energy Solution after the South Korean company and Toyota announced a partnership to ramp up battery production for electric vehicles.
Specifically, the company will invest in its LG Energy Solution Michigan plant in Holland to build new production lines for battery cells and components, with the lines expected to be completed by 2025. The battery components will be exclusively used by Toyota, according to a news release.
“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, in the release. “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.”
LG Energy Solution will produce modules that will end up at Toyota’s manufacturing plant in Georgetown, Kentucky, where the modules will be assembled into battery packs to be used in electric vehicles. The Japanese automaker aims to sell 1.5 million electric vehicles in 2026, the Associated Press reported.
LG Energy Solution is currently completing construction on a $1.7 billion expansion to its Holland plant. Work is expected to be completed in 2024, according to the Holland Sentinel, and mass production is expected to begin the following year. LG Energy Solution first opened the west Michigan plant in 2010, and it’s one of the company’s seven U.S.-based manufacturing facilities.
Currently, LG Energy Solution works with several automakers, including General Motors, Ford and Stellantis, to provide electric vehicle battery components, per the company website.
Gov. Gretchen Whitmer applauded the announcement.
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