Toyota has decided to move a $1.5 billion order to the LG Energy Solution plant in Michigan, following General Motors’ (GM) exit from the project.
Initially conceived as a joint venture between GM and LG, this plant in Lansing has been in the spotlight following GM’s announcement in December, when it reported that it would sell its stake to LG, forcing the latter to seek new customers to ensure its viability.
With the transfer of the order, it is expected that the batteries acquired by Toyota will be used in hybrid and electric vehicles. In addition, LG is considering the possibility of diversifying its operations on-site, exploring the energy storage sector at the same plant.
Objective: one million electric cars by 2026
This factory had an initially projected cost of $2.5 billion, with GM and LG sharing the investment, and both received $480 million in government incentives, which GM is now helping to transfer to LG.
Toyota has expressed its intention to increase the production of electric vehicles to at least one million units globally by 2026, although this figure is lower than its previous target of 1.5 million.
To strengthen its battery supply for future hybrid and electric models, the Japanese automaker will open a new plant in North Carolina.
However, rumors have also emerged about possible delays in the launch of a new fully electric model, a three-row SUV intended to be assembled in Kentucky, which could be postponed from 2025 to 2026.
In addition, Toyota has canceled plans to manufacture electric SUVs under its Lexus brand in the United States, opting to continue importing them from Japan.