Toyota backs LG’s Michigan battery plant with $1.5B order
LG Energy Solution was looking for new customers after General Motors reached a non-binding agreement with LG to sell its stake in the Lansing, Michigan, plant.
Japanese automaker Toyota has agreed to shift a USD 1.5 billion order with LG Energy Solution to boost operations at a Michigan EV battery plant after General Motors backed out of the project, Bloomberg reports.
LG was looking for new customers after GM reached a non-binding agreement with LG to sell its stake in the Lansing, Michigan, plant.
Toyota has agreed to transfer an existing order from another LG plant in Michigan when LG fully acquires the Lansing facility. This is expected in spring and the purchase order is to the tune of USD 1.5 billion, sources told Bloomberg.
“This is part of our strategic objective to further optimize our investments in North America and also respond to the needs from global automakers,” LG said.
South Korean firms such as automakers Hyundai and Kia and battery manufacturers such as LG Energy have invested a whopping USD 54 billion into EV battery plant projects in the US.
But a lot of uncertainty surrounds the sector because the Trump administration has threatened to end government support for EVs.
LG’s batteries can be used for both all-electric and hybrid vehicles. LG is reportedly trying to fill the gap with battery storage customers amid the rise of AI which has increased demand for data centers.
Meanwhile, Toyota’s first battery plant in the US is ready to begin production and “will start shipping batteries for North American electrified vehicles in April,” the Japanese company recently announced.
