LG Energy and Toyota said Wednesday they’ve reached a long-term agreement to supply batteries for electric vehicles in the United States.

Under the deal, LG will supply Toyota with 20GWh of high-nickel NCMA battery modules beginning in 2025.LG Energy will build the batteries in Michigan for Toyota vehicles including those set to be made in Kentucky beginning in 2025.Toyota plans to use the battery deal to supply multiple initiatives offering 30 Toyota EV models in the U.S. and globally.

“At Toyota, our goal is to reduce carbon emissions as much as possible, as fast as possible,” said Tetsuo “Ted” Ogawa, president and CEO of Toyota Motor North America in a statement. “Having secure supplies of lithium-ion batteries at scale with a long-term relationship to support Toyota’s multi-pathway approach and growth plans for BEVs in North America is critical to achieve our manufacturing and carbon reduction plans.”LG Energy plans to invest roughly $3 billion in its Michigan battery facility to establish new battery production lines exclusively for Toyota.

“We’re excited to have Toyota, the best-selling global automaker, as our new customer,” said LG Energy Solution CEO Youngsoo Kwon. “With our 30 years of experience in lithium-ion batteries, we will provide innovative power solutions to support Toyota’s push further into battery electric vehicles.”The LG Energy-Toyota EV battery deal is LG’s single biggest supply agreement outside of joint venture agreements. LG has eight North American battery manufacturing plants currently operating or under construction.In September Hyundai Motor and LG announced the two companies would spend $2 billion more than the original $2.3 billion investment planned for battery manufacture in Bryan County, Ga.

The two companies’ total EV battery investments in Georgia will reach $7.59 billion and add 8,500 jobs to the region during the next eight years.When those projects are complete in 2028, the battery plants will support production of roughly 300,000 EV’s per year.