South Korean battery manufacturer LG Chem has entered into a supply agreement for cathode active materials (CAM) with Prime Planet Energy & Solutions (PPES), the battery joint venture formed by Toyota and Panasonic. Under the agreement, LG Chem will supply the PPES plant in Japan starting in 2026, although the company has not disclosed the specific volume of deliveries.
This partnership is part of LG Chem’s broader expansion strategy to align with PPES’s electric vehicle (EV) battery initiatives. Since its establishment in 2020, PPES has experienced rapid growth, highlighted by the announcement of its third battery plant in China in 2022. The joint venture plays a critical role in Toyota’s international ambitions for EV production.
In 2022, Toyota committed up to 730 billion yen (approximately $5.6 billion) to enhance battery production capabilities for battery electric vehicles in Japan and the U.S., with operations expected to commence between 2024 and 2026.
This investment included 325 billion yen (around $2.5 billion) allocated for a battery plant in North Carolina, aimed at boosting production capacity and expanding upon a previously planned investment of $1.29 billion for the U.S. facility.
Shin Hak-cheol, CEO of LG Chem, emphasized the importance of securing a stable supply of cathode materials for PPES, calling it a significant milestone. He highlighted the company’s unique product and process technologies, along with a competitive supply chain, as key factors in fostering global collaborations in the evolving EV market.
