Plans involving Toyota of Japan and the United States for the delivery of batteries for electric vehicles will shortly be confirmed by LG Energy Solutions. Alongside Honda, another Japanese automaker, it already operates a joint venture called LH Battery. The corporation hopes to fully develop in the fast expanding North American EV sector through this.
LG Energy Solutions is rumoured to be deciding shortly on a collaboration strategy with Toyota, for instance battery distribution in the United States, in accordance to the market on the 25th. According to battery production capacity, the joint venture’s potential output is predicted to reach 20 gigawatt hours (GWh). The maximum investment amount is about 3 trillion won.
It is well known that both corporations have invested the same amount. At a previous shareholders meeting in March, vice-chair of LG Energy Solutions Kwon Young-soo pointed out that “cooperation (with Toyota) has been going well.”
From the perspective of LG Energy Solutions, this is significant since Toyota, Volkswagen, and Honda will all compete for the top spot in the global finished car sector. Toyota and Panasonic have founded and are now running a battery joint venture known as Prime Planet Energy & Solutions (Prime Planet Energy). It is anticipated that it will only be used for the native Japanese market.
Several battery platforms, including pouch-type batteries, will be examined as part of the partnership with LG Energy Solutions. Honda used to make pouch-style batteries. Prisma- and cylindrical-shaped batteries have historically been used by Toyota. Prism batteries are also produced by Prime Planet Energy. Toyota can turn the batteries into finished automobiles thanks to Prime Planet Energy’s production of batteries in Japan and LG Energy Solutions’ production of batteries in North America.
Toyota recently modified its approach to prioritising hydrogen and hybrid vehicles. North America, the largest market in the world, requires a distinct battery source as the switch to electric vehicles picks up speed. By 2026, it hopes to introduce ten new electric vehicle types and sell 1.5 million of them yearly.
In order to achieve a 280GWh production capacity by 2030, it would additionally allocate 2 trillion yen (about 20 trillion won) on manufacturing batteries alone. By 2026, it intends to have 40GWh of battery production capacity in the US and Japan. The collaboration with Panasonic will handle the remaining 20GWh, with LG Energy Solutions taking care of the rest.
A ground-breaking event for a battery collaboration between LG Energy Solutions and Honda was place last month close to Jeffersonville, Ohio, in the United States. A joint 35GWh power plant with Hyundai Motors is anticipated to be built. Together with General Motors (GM) and Stellantis, two additional automakers, it intends to produce 145GWh and 45GWh batteries, respectively. With the exception of the facilities in Michigan and Arizona, just the batteries which LG Energy Solutions will create as a joint venture will have an annual production capacity of 285 GWh in North America.