Honda, LG Energy Solution to build $4.4 billion battery factory in the US
An employee checks the door of a 2018 Honda Accord during production at the Honda of America Manufacturing Inc. in Marysville, Ohio, on Thursday, December 21, 2017.
Ty Wright | Bloomberg | beautiful pictures
Honda Motor and LG Energy Solution said on Monday they plan to invest $4.4 billion to build a new battery plant for electric vehicles in the US.
The announcement marks the latest plans by automakers to invest in U.S. battery cell production for electric vehicles, as the industry strives to meet stricter regulations and push accelerate the production of such zero-emissions cars and trucks. Others have included Synthetic engine, Ford Motor, Rivian Automotive and Hyundai Motor.
Honda and LG Energy say their plants are expected to begin mass production of advanced lithium-ion battery cells by the end of 2025.. The plant will be built and operated by a joint venture between the companies, which is expected to be established this year.
Many automakers’ battery plant investments are subject to stricter sourcing guidelines that are part of the United States-Mexico-Canada Agreement (formerly the North American Free Trade Agreement). America) and more recently, Inflation Reduction Act. Both increase requirements for domestically sourced parts and materials for vehicles to avoid taxes or qualify for financial incentives.
Honda and LG Energy Solution have not announced a location for the multibillion-dollar plant, but automakers have largely announced battery production near their assembly plants. Honda currently has major manufacturing operations in Ohio, Alabama and Indiana.
The new plant will have an annual production capacity of about 40 gigawatt hours, in line with factory announced of other car manufacturers. Earlier this year, Honda said it plans to release 30 electric cars around the world and produce about 2 million EVs per year by 2030.
Youngsoo Kwon, CEO of LG Energy Solution, called the new factory “another milestone” for the South Korea-based company, which also has joint ventures with GM, Hyundai and Jeep manufacturer Stellantis.
Honda CEO Toshihiro Mibe said: “In line with our long-term commitment to building products that are customer-friendly, Honda is committed to procuring EV batteries locally, a key vehicle component. EVs”.
LG Energy Solution is a byproduct of LG Chem.