Honda Motor Co. Ltd. and LG Energy Solution have established a joint venture to produce lithium-ion batteries in the U.S. that will power future Honda and Acura electric vehicles (EVs).
Under the agreement, LG and Honda will invest a total of $4.4 billion and establish a new EV plant in the U.S. Once completed, the factory will have an annual production capacity of about 40 GWh.
The plant will develop pouch-type batteries that will be supplied exclusively to Honda facilities in North America. The location of the plant has not yet been determined but the two companies aim to begin construction in early 2023 and hope to enable the start of mass production of lithium-ion battery cells by the end of 2025.
The companies decided to establish the EV battery plant in the U.S. based on expanding local EV production. The new plant will ensure that a supply of batteries will put it in a position to target a rapidly growing North American EV market.
These companies are not the only ones building new battery plants in the U.S. Hyundai Motors as part of its $10 billion investment in smart mobility would include the construction of its first EV and battery manufacturing plant in the country.
In January, General Motors said it would invest more than $7 billion in four Michigan manufacturing facilities including an Ultium cell battery plant at Lansing, Michigan. It will be the third battery cell manufacturing plant for GM.
Part of Ford’s $11.4 billion investment in EV infrastructure announced last year will include new twin battery plants in Kentucky.
