Honda and LG Energy Solutions Partner to Mass Produce EV Batteries In New US Plant
Honda and LG Energy Solution announced a $4.4 billion joint venture to produce lithium-ion batteries in the U.S. to power Honda and Acura electric vehicle (EV) models for the North American market, per a press release from the companies.
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The decision was based “on the shared belief that expanding local electric vehicle production and ensuring the timely supply of batteries would put them in the best position to target the rapidly-growing North American EV market,” the companies shared in the release.
Honda and LG will invest $4.4 billion to establish the new U.S. plant and aim to have an annual production capacity of approximately 40GWh. Construction of the plant is slated for early 2023, and mass production of advanced lithium-ion battery cells should start by the end of 2025.
“Honda is working toward our target to realize carbon neutrality for all products and corporate activities the company is involved in by 2050,” Toshihiro Mibe, President, CEO and Representative Director of Honda Motor Co. “Aligned with our longstanding commitment to build products close to the customer, Honda is committed to the local procurement of EV batteries which is a critical component of EVs. This initiative in the U.S. with LGES, the leading global battery manufacturer, will be part of such a Honda approach.”
In April, Honda announced that over the next 10 years, it would spend 5 trillion yen ($36 billion) in the area of electrification and software technologies to further accelerate its electrification, according to a press release at the time. In addition, the company said that it planned to launch 30 EV models globally by 2030 with a production volume of more than 2 million units annually.
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As of now, where the plant will be built is unknown. However, there is speculation that Ohio may win the bid for the new factory. According to the Journal-News, Gov. Mike DeWine is in talks with Honda and LG. Honda already employs 15,000 Ohioans in multiple factories and warehouses across the state.
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