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Toyota (TM) Signs Supply Agreement With LG to Source Batteries
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Toyota Motor Corporation (TM - Free Report) and LG Energy Solution have signed a battery supply agreement. This agreement will help Toyota acquire lithium-ion battery modules from LG to power its battery electric vehicles (BEVs) planned to be assembled in the United States.
LG will supply Toyota with 20 GWh of battery modules annually, starting from 2025. The supply will be sufficient for the production of 250,000 electric vehicles (EVs) per year.
Per the agreement, the battery modules will consist of high-nickel NCMA (nickel, cobalt, manganese, aluminum) pouch-type cells.
LG plans to invest $3 billion in its Holland, MI, plant to set up exclusive battery production lines for Toyota. The line will increase battery module supply to Toyota’s Kentucky plant. In the plant, the battery modules will be assembled into battery packs and used to power EVs in the United States.
In May, Toyota stated that it would manufacture its first EV assembled in the United States at its Kentucky plant in 2025. This EV would be among Toyota’s ten EVs scheduled to launch globally by 2026.
Tetsuo Ogawa, president and CEO of Toyota Motor North America, said that the battery supply agreement is critical to meeting Toyota’s manufacturing and carbon reduction plans.
For Toyota, the ratio of electrified vehicles sold to total sales in fiscal 2023 was 29.6%. The company expects the ratio to increase to 37% in fiscal 2024.
The Japan-based auto giant aims to generate 40% of its global sales from EVs by 2025 and 70% by 2030. The company plans to invest 4 trillion yen ($35 billion) in a lineup of 30 BEVs by 2030. It aims to expand global sales of BEVs to 3.5 million units a year by 2030.
The Zacks Consensus Estimate for LI’s 2023 sales and earnings implies year-over-year growth of 154.7% and 9,200%, respectively. The EPS estimate for 2023 and 2024 have moved north by 31 cents and 65 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for F’s 2023 sales and earnings indicates year-over-year rises of 7.5% and 12.2%, respectively. The EPS estimates for 2023 and 2024 have moved up by 6 cents and 8 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for MOD’s 2023 sales and earnings implies year-over-year growth of 9.2% and 47.7%, respectively. The EPS estimates for 2023 and 2024 have moved north by 24 cents and 20 cents, respectively, in the past 60 days.
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Toyota (TM) Signs Supply Agreement With LG to Source Batteries
Toyota Motor Corporation (TM - Free Report) and LG Energy Solution have signed a battery supply agreement. This agreement will help Toyota acquire lithium-ion battery modules from LG to power its battery electric vehicles (BEVs) planned to be assembled in the United States.
LG will supply Toyota with 20 GWh of battery modules annually, starting from 2025. The supply will be sufficient for the production of 250,000 electric vehicles (EVs) per year.
Per the agreement, the battery modules will consist of high-nickel NCMA (nickel, cobalt, manganese, aluminum) pouch-type cells.
LG plans to invest $3 billion in its Holland, MI, plant to set up exclusive battery production lines for Toyota. The line will increase battery module supply to Toyota’s Kentucky plant. In the plant, the battery modules will be assembled into battery packs and used to power EVs in the United States.
In May, Toyota stated that it would manufacture its first EV assembled in the United States at its Kentucky plant in 2025. This EV would be among Toyota’s ten EVs scheduled to launch globally by 2026.
Tetsuo Ogawa, president and CEO of Toyota Motor North America, said that the battery supply agreement is critical to meeting Toyota’s manufacturing and carbon reduction plans.
For Toyota, the ratio of electrified vehicles sold to total sales in fiscal 2023 was 29.6%. The company expects the ratio to increase to 37% in fiscal 2024.
The Japan-based auto giant aims to generate 40% of its global sales from EVs by 2025 and 70% by 2030. The company plans to invest 4 trillion yen ($35 billion) in a lineup of 30 BEVs by 2030. It aims to expand global sales of BEVs to 3.5 million units a year by 2030.
Zacks Rank & Key Picks
TM currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Li Auto (LI - Free Report) , Ford Motor Company (F - Free Report) and Modine Manufacturing Company (MOD - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LI’s 2023 sales and earnings implies year-over-year growth of 154.7% and 9,200%, respectively. The EPS estimate for 2023 and 2024 have moved north by 31 cents and 65 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for F’s 2023 sales and earnings indicates year-over-year rises of 7.5% and 12.2%, respectively. The EPS estimates for 2023 and 2024 have moved up by 6 cents and 8 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for MOD’s 2023 sales and earnings implies year-over-year growth of 9.2% and 47.7%, respectively. The EPS estimates for 2023 and 2024 have moved north by 24 cents and 20 cents, respectively, in the past 60 days.