LG Energy Solution and Honda partner to produce EV batteries in the US.

LG Energy Solution and Honda Motor Co., Ltd. today announced an agreement to establish a joint venture (JV) company to produce lithium-ion batteries in the U.S. to power Honda and Acura EV models for the North American market.

LGES and Honda will invest a total of USD 4.4 billion and establish a new JV plant in the U.S. The plant aims to have an annual production capacity of approximately 40GWh.

The pouch-type batteries produced at the new JV plant will be supplied exclusively to Honda facilities in North America. While the location for the joint venture plant is yet to be finalized, based on Honda’s plans for EV production in North America, the two companies aim to begin construction in early 2023 to enable the start of mass production of advanced lithium-ion battery cells by the end of 2025.

LGES and Honda decided to establish the joint venture battery plant in the US 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 joint venture is scheduled to be established in 2022. The closing is subject to customary closing conditions, including regulatory approvals.

Youngsoo Kwon, CEO of LG Energy Solution, said: Our joint venture with Honda, which has a significant brand reputation, is yet another milestone in our mid-to-long-term strategy of promoting electrification in the fast-growing North American market. Since our ultimate goal is to earn our valued customers’ trust and respect, we aspire to position ourselves as a leading battery innovator, working with Honda in achieving its core initiatives for electrification, as well as providing sustainable energy solutions to discerning end consumers.

Toshihiro Mibe, President, CEO, and Representative Director of Honda Motor Co., Ltd., said: Honda is working toward our target to realize carbon neutrality for all products and corporate activities the company is involved in by 2050. 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.

Also Read: Global Electric two and three-wheeler market to reach USD 41 million by 2030.

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