Ford Authority

Ford Rival Toyota Will Also Build EV Components In Michigan

In recent years, Ford has vastly expanded its plans to produce EVs and batteries in the U.S., in addition to other parts of the world. That includes BlueOval Battery Park Michigan – though construction work there is currently paused amid the ongoing UAW strike – which is slated to produce lithium iron-phosphate batteries when it’s completed. However, Ford won’t be the only automaker sourcing EV components from the state of Michigan, as it will be joined by rival Toyota, that company has announced.

Toyota has signed a supply agreement with LG Energy Solution that will involve the latter company supplying the automaker with lithium-ion battery modules built at its Michigan-based plant. Currently, LG also supplies batteries to The Blue Oval, which utilizes them in the standard ranger Ford Mustang Mach-E and the E-Transit.

LG will supply Toyota with these battery modules – which consist of high-nickel NCMA (nickel, cobalt, manganese, aluminum) pouch-type cells – at an annual capacity of 20GWh starting in 2025. Those units will be used in a variety of future Toyota EVs, including one slated to be built at the automaker’s Kentucky plant beginning that same year. LG Energy Solution will invest a total of $3 billion in its Michigan facility to establish new production lines for battery cells and modules slated exclusively for Toyota to help fulfill this new deal.

“At Toyota, our goal is to reduce carbon emissions as much as possible, as fast as possible,” said Tetsuo Ogawa, president and CEO of Toyota Motor North America. “Having secure supplies of lithium-ion batteries at scale with a long-term relationship to support Toyota’s multi-pathway approach and growth plans for BEVs in North America is critical to achieve our manufacturing and carbon reduction plans. Working with LG Energy Solution, we are excited to be able to offer products that will provide the performance and quality our customers expect.”

We’ll have more on everything Ford’s competition is up to soon, so be sure and subscribe to Ford Authority for continuous Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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