Following LG Energy Solution’s recent massive electric vehicle battery supply contract with Toyota, the world’s top-selling automaker, LG Chem has also sealed a deal with Toyota to supply cathode materials, an essential component for secondary batteries.
On Oct. 6, LG Chem announced that it had entered into a mid-to-long-term contract with Toyota’s North American manufacturing and technology arm (TEMA) to supply cathode materials for electric vehicles until 2030.
The value of the contract is around 2.86 trillion won (US$2.13 billion). According to industry sources, this amount can cater to the production of 600,000 to 700,000 electric vehicles.
LG Chem plans to produce and provide cathode materials that meet the U.S. Inflation Reduction Act (IRA) requirements and further aims to build a long-term collaborative relationship with Toyota.
The cathode material is a crucial component that determines the capacity of a battery.
Earlier, LG Energy Solution revealed on Oct. 5 that it had finalized a long-term supply contract with Toyota for electric vehicle batteries, amounting to an annual capacity of 20 gigawatt-hours (GWh).
Excluding joint ventures, this contract represents the largest single order for LG Energy Solution. In September of the previous year, LG Energy Solution had also entered into a joint venture with the Japanese automaker Honda to establish a battery production plant in the U.S., with an annual production capacity of 40 GWh.
Toyota, known for its focus on hybrid vehicles and perceived delay in transitioning to electric vehicles, has recently ramped up its electrification efforts.
The company announced plans to launch 30 electric vehicle models by 2030 and aims to sell 3.5 million electric vehicles annually in the global market.
