Arconic announced a multi-year supply deal Monday with Toyota North America to supply aluminum for the automaker's all-new Lexus RX.
Under the contract, Arconic becomes the sole aluminum sheet supplier to Toyota for the Lexus RX.
The new deal will mean added production for Arconic Davenport Works in Riverdale and for Arconic's automotive aluminum finishing plant in Danville, Illinois.
Financial details of the transaction were not disclosed.
"Automakers worldwide are turning to aluminum for the stronger, tougher, higher performing vehicles that consumers demand," said Mark Vrablec, the president of Arconic's Aerospace & Automotive Products business.
Toyota debuted its Lexus RX last year. The vehicle became Toyota's first vehicle in North America to prominently feature aluminum exterior panels.
The Lexus RX was named the Best Luxury SUV of 2016 by Consumer Reports.
"Many best-selling vehicles in America have already converted to aluminum for improved performance, including better fuel efficiency, more towing and payload capacity, and improved vehicle safety scores. This trend will continue," Vrablec said.
The new deal is the latest automotive relationship since a $300 million expansion was completed in 2014 at the Riverdale plant, formerly known as Alcoa Davenport Works. Designed to increase capacity and technologies to serve the automotive manufacturing business, the project included a new heat treating line and a line for Alcoa's then-new proprietary pretreatment bonding technology, known as Alcoa 951.
The local expansion added 150 full-time jobs and helped retain 200 jobs at the Riverdale plant, which now employs 2,600. The contract with Toyota is not expected to create new jobs for Davenport Works.
Arconic is a premier partner to the high-growth automotive industry. In addition to Davenport Works, it has operations in Alcoa, Tennessee, and technologies such as the Arconic Micromill in San Antonio, Texas.
Arconic was created Nov. 1, 2016, when Alcoa Inc. split into two publicly traded companies, which also included Alcoa Corp.
The global manufacturer estimates it will grow its automotive sheet revenue from $76 million in 2010 to $1.3 billion in 2018. Across its automotive portfolio, Arconic said it generates 98 percent of its revenues from products where it is No. 1 or No. 2 in its segment.