Toyota to Shift $1.5 Billion Order to LG Energy Solution Battery Factory in Michigan
According to a report by Automotive News, Toyota plans to transfer a $1.5 billion order to an LG Energy Solution battery factory in Michigan. This move aims to support the factory after General Motors withdrew from the project.
The battery factory, located in Lansing, Michigan, was initially a joint venture between GM and LG. However, GM decided to sell its stake to LG in December, leaving the battery maker in search of new customers.
Rendering of planned General Motors Ultium Cells Lansing battery plant
Toyota has agreed to move an existing order from another LG plant in Michigan to the Lansing factory once LG completes the acquisition, expected to take place this spring. The batteries from this deal could be used in hybrids, electric vehicles, and energy storage applications.
The factory, originally projected to cost $2.5 billion, had GM and LG sharing the investment. Both companies also received $480 million in government incentives for the project, with GM working on transferring these incentives to LG in collaboration with the State of Michigan and the Michigan Economic Development Corporation.
2025 Toyota bZ4X
In September of last year, Toyota announced plans to increase EV production to at least one million units globally by 2026. This goal marks a significant increase from 2023 levels, although it is slightly lower than the automaker’s previous target of 1.5 million units.
Additionally, Toyota is set to open its own battery factory in North Carolina to enhance the supply for future hybrids and EVs. However, reports suggest that the launch of a new all-electric three-row SUV, initially planned for 2025 in Kentucky, may be delayed to 2026. The company has also canceled the production of Lexus electric SUVs in the U.S., opting to import these vehicles from Japan instead.