LG Energy Solution and Toyota Tsusho Launch Joint Venture

Photo Credit: LG Energy Solution

LG Energy Solution and Toyota Tsusho Corporation have formed a new joint venture, Green Metals Battery Innovations, LLC, to develop a battery recycling facility in the United States, according to an official announcement. The venture underscores both companies’ commitment to circular economy practices and strengthening the sustainable supply chain for electric vehicle (EV) batteries.

The joint venture agreement was signed between LG Energy Solution Michigan and Toyota Tsusho America, with plans to construct a pre-processing plant in Winston-Salem, North Carolina. According to the companies, the facility will focus on extracting black mass — a substance rich in valuable metals such as nickel, cobalt, and lithium — from scrap materials generated during battery manufacturing.

Initial operations will involve processing scrap generated by LG Energy Solution during EV battery production for Toyota Motor Corporation. The facility is scheduled to begin operations in 2026, with an anticipated annual processing capacity of 13,500 tons — the equivalent of over 40,000 EV batteries, according to company estimates.

Once the black mass is extracted, it will be sent for further post-processing to recover raw materials, which will then be reintroduced into the battery production cycle. Industry observers note that this closed-loop recycling system is expected to significantly reduce environmental impact while reinforcing supply chain stability.

According to LG Energy Solution’s Chief Strategy Officer, Chang Beom Kang, “This joint venture will not only help secure a stable supply of key battery materials but also enhance the competitiveness of our recycling business in North America. We are fully committed to leading the recycling market through innovative and differentiated technologies.”

Toyota Tsusho’s Chief Operating Officer, Masaharu Katayama, echoed this sentiment, stating, “We are proud to partner with LG Energy Solution to advance the battery recycling infrastructure in North America. This joint venture is a significant step toward realizing a circular economy for batteries, which is essential for building a sustainable mobility society.”

Industry experts view the collaboration as a strategic move by both companies to reduce carbon emissions and address growing concerns over raw material scarcity in the battery sector.

Source: LG Energy Solution