In a turn of events, Toyota is stepping in to support LG Energy Solution’s EV battery plant in Michigan. Toyota reportedly placed a $1.5 billion order to boost operations at the facility after GM backed out.
Toyota steps in, GM out at Michigan EV battery plant
GM reached a non-binding agreement with LG in December to sell its stake in their planned EV battery plant in Lansing, Michigan.
The facility was one of three GM had announced in 2022 as part of its joint venture, Ultium Cells. GM said it was dropping the Ultium branding in October, but the underlying batteries and tech would remain.
After GM backed out of the project, Toyota reportedly stepped in to support operations. According to sources familiar with the matter (via Automotive News), Toyota agreed to place a $1.5 billion order to help boost operations.
Toyota is shifting an existing order from a separate LG plant in Michigan. The transaction will be finalized once LG acquires GM’s stake in the facility, which is expected this spring.
The news comes as the Trump administration threatens to end government support for EVs. South Korean companies, including automakers like Hyundai and Kia and battery makers such as LG Energy, invested $54 billion into EV battery plant projects in the US.
With fewer incentives, several companies, including Ford and GM, have scaled back EV plans, leaving battery makers like LG Energy scrambling to fill demand.
LG’s batteries can be used in all-electric or hybrid vehicles. According to the report, LG plans to fill the gap with battery storage customers with higher demand for data centers with the rise of AI.
The plant is still expected to begin production soon. LG said in a statement, “This is part of our strategic objective to further optimize our investments in North America and also respond to the needs from global automakers.”
Earlier this month, Toyota said that its first battery plant (Toyota Battery Manufacturing North Carolina) in the US “is ready to begin production and will start shipping batteries for North American electrified vehicles in April.”
Toyota invested close to $14 billion in the facility, which is its first in-house battery plant outside of Japan, to establish a new “epicenter” for North American battery production. The facility will produce batteries for EVs, HEVs, and PHEV models.