Shulou(Shulou.com)11/24 Report--

CTOnews.com January 8 news, LG Energy Solution (LG New Energy) and Toyota battery cooperation has become a hot issue in the world battery industry.

LG Energy Solution prefers to supply batteries to Toyota rather than form a joint venture, and the company is likely to supply soft-pack batteries to the Japanese carmaker, according to BusinessKorea.

CTOnews.com has learned that LG Energy Solution is currently producing soft-pack batteries at its plant in Michigan.

Toyota has been using prismatic batteries so far, but it appears to be diversifying, analysts say. With the implementation of the IRA Act in the United States this year, Toyota also hopes to get more batteries as soon as possible.

In fact, Toyota announced as early as August 2022 that it would invest heavily in the electric vehicle industry in the United States and Japan. At the time, the carmaker proposed a plan to build its own battery plant in the United States, rather than a joint venture with other companies. Industry insiders expect Toyota to keep its suppliers diversified and focus on producing its own batteries in the future.

Experts believe LG Energy Solution and Toyota will keep the final contract for battery supply secret. "when a battery company signs a supply contract with a car company, the details of the contract are usually not disclosed," one industry insider explained.

Analysts predict that the partnership between the two companies will become more apparent as early as the first quarter of 2023. LG Energy Solution is strengthening its cooperation with the Japanese auto industry, which is supplying batteries to Nissan and is setting up a joint venture with Honda.

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