Battery maker LG Energy Solution and vehicle OEM Honda Motor plan to establish a joint venture (JV) company in the US to produce lithium-ion batteries for the latter’s EV models for the North American market.
The firms will invest $4.4 billion into the JV plant in the US with a planned annual production capacity of around 40GWh.
The JV’s pouch-type batteries will be supplied exclusively to Honda facilities in North America for use in its Honda and Acura EV models.
Jon Husted, lieutenant governor of Ohio, fueled rumours with a “More to come” tweet (see right); and Honda has a four-million square foot auto plant in Marysville, Ohio.
Based on Honda’s plans for EV production in North America, the two companies aim to begin construction in early 2023, in order to start mass production of lithium-ion cells by the end of 2025.
Toshihiro Mibe, president, CEO and representative director of Honda, said: “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 US with LGES, the leading global battery manufacturer, will be part of such a Honda approach.”
The joint venture is scheduled to be established in 2022.
The closing is subject to customary closing conditions, including regulatory approvals.
