HOLLAND, Michigan — LG Energy Solution and Toyota announced a new partnership Wednesday that industry insiders say cements West Michigan as a leader in battery manufacturing.
The two companies signed a supply agreement for lithium-ion batteries that will be used in Toyota electric vehicles (EV).
Starting in 2025, these automotive batteries will be manufactured in LG Energy Solutions' Holland, Michigan facility. Then, the EV will be assembled at a Toyota plant in Kentucky.
With this deal, LG Energy Solutions now supplies batteries to all top five global automakers.
“Today’s announcement that LG Energy Solution and Toyota are partnering up to power electric vehicles in America right here in Michigan reaffirms our strategy to Make It in Michigan by building a landscape that encourages global investment while creating opportunities for people and communities across our state. Together, we can continue growing our economy, creating good-paying jobs, and further cement Michigan as the global epicenter of the next revolution of the automotive industry," Gov. Gretchen Whitmer said in a statement.
Last year, LG Energy Solution announced a more than $1.5 billion building expansion plan at the Holland location.
“We’re excited to have Toyota, the best-selling global automaker, as our new customer. With our 30 years of experience in lithium-ion batteries, we will provide innovative power solutions to support Toyota’s push further into battery electric vehicles,” said Youngsoo Kwon, CEO of LG Energy Solution. “The agreement also presents another big opportunity for us to strengthen our production capacity in North America, thereby bringing more real-life, large-scale progress toward electrification in the region.”
In 2010, the Holland City Council approved 15-year Renaissance Zone for LGC's original lithium-ion manufacturing plant. The plant started producing batteries for Chevrolet Volts in 2013 shortly after construction finished.
Lakeshore Advantage, an economic development organization based in Allegan and Ottawa counties, believes this move will help ensure this region's manufacturing economy continues to thrive.
"LGES’s agreement with Toyota, and resulting investment in its Holland facility, cements this region as a leader in battery manufacturing—a reputation earned by dozens of West Michigan companies that make up this region’s battery manufacturing cluster," Lakeshore Advantage President Jennifer Owens said.
"The investment is an economic boost in the long-term with implications for the future landscape of the Advanced Energy Storage (AES) supply chain. The car battery is the new engine. Having key components of electric vehicles manufactured here will ensure this region’s manufacturing economy continues to thrive. It is a pivotal moment in time to ensure that Michigan continues to lead in the automotive industry."
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