LG Energy Solution (LGES) is in talks to supply Toyota Motor with batteries to power future electric vehicle (EV) models, according to local reports citing a senior company official.
LGES is South Korea’s largest EV battery manufacturer and aims to challenge China’s Contemporary Amperex Technology Company Limited’s (CATL) global leadership by the end of the decade.
The company has been investing heavily in new manufacturing capacity, particularly in the US where it has manufacturing joint ventures with General Motors, Stellantis, Honda and Hyundai.
Last week it announced a new US$5.5bn investment in an Arizona factory which would be its second wholly owned EV battery plant in the country.
Last year LGES, which also has factories in South Korea, China and Poland, said it planned to have capacity for 200 gigawatt hours of batteries in place in North America by 2025, enough to power 2.5m high performance EVs.
Adding Toyota to its customer list would be a major achievement for the company.
LGES CEO Kwon Young Soo said at this month’s annual shareholders meeting talks with Toyota were continuing, adding “we are discussing the way of cooperation”.
According to company sources, LGES wants to supply Toyota with EV battery cells from its wholly owned facilities rather than establish a new joint venture with the automaker, with an agreement expected to be signed in the coming weeks.