Shares of Toyota Motor (NYSE: TM) were up 2% as of 12:23 p.m. ET on Thursday after the company signed a $3 billion battery supply deal for its electric vehicles (EVs) in the U.S. 

LG Energy Solution will ramp up new production lines for EV battery cells and modules, which will be made exclusively for Toyota and is scheduled to be completed by 2025. This is an important deal for the leading car manufacturer as it plans to scale its EV production through 2030. 

Revenue from the EV market is expected to grow 10% per year through 2028 and reach $561 billion, according to Statista. That would put annual EV production at about 17 million in 2028. One headwind that could slow down the expected growth are bottlenecks in the supply chain, especially for the complicated manufacturing process of EV batteries.

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Source Fool.com