Inside the $2 Billion Battery Factory Making Cells for Tesla and Toyota
LG Energy Solution's facility focuses on LFP cells as automakers seek cost-effective battery chemistries.
LG Energy Solution operates a $2 billion factory producing lithium iron phosphate (LFP) battery cells for Tesla and Toyota, according to a report from InsideEVs.
What Happened
The facility represents a significant investment in LFP technology, a battery chemistry that has gained traction among automakers seeking more affordable alternatives to nickel-rich batteries. The plant supplies cells to both Tesla and Toyota, marking a rare instance where two major automakers share production from the same supplier for this cell type.
Why It Matters
LFP batteries are typically cheaper to produce than traditional lithium-ion packs using nickel manganese cobalt chemistry. For buyers, this could translate to more affordable EVs or improved margins for manufacturers. The shared supply arrangement also signals broader industry movement toward LFP as a mainstream option for mass-market electric vehicles.
The Bottom Line
LG Energy Solution's $2 billion investment underscores the growing importance of LFP batteries in the EV market, with both Tesla and Toyota turning to this chemistry for certain vehicle lines.
