LG New Energy is in talks with Toyota about supplying the batteries it produces at its U.S. plants to Toyota's U.S. plants. The two sides plan to sign a memorandum of understanding for battery supply within this year.
As a result, LG New Energy will supply batteries to nine of the world's top ten automakers. They are Volkswagen, Renault Nissan, Hyundai, Kia, Stelantis, GM, Ford, BMW and Honda.
It is reported that in August this year, LG New Energy and Honda reached an agreement to establish a joint battery plant in Ohio, USA through a total investment of 5.1 trillion won (about 25.5 billion yuan).
With the implementation of the Inflation Reduction Act (IRA) in the United States, ensuring locally produced batteries has become a must for automakers. According to market research firm SNE Research, the U.S. electric vehicle battery market is expected to grow rapidly from 64GWh in 2021 to 143GWh in 2023 and 453GWh in 2025. Its average annual growth rate is expected to reach 63%.
LG New Energy will invest more than 20 trillion won (about 100 billion yuan) to expand its production capacity in North America. It plans to run the battery plant jointly with General Motors and Stellantis, or to operate it on its own. LG New Energy's production capacity in North America will reach 255GWh in 2025. This quantity could be used to produce more than 3 million high-performance pure electric vehicles that can travel more than 500 kilometers on a single charge.