Honda Motor Co. and LG Energy Solution announced an agreement to establish a joint venture (JV) to produce lithium-ion batteries in the United States to power Honda and Acura EV models for the North American market. The companies will invest a total of $4.4 billion in the plant, which aims to have an annual production capacity of approximately 40 GWh. The pouch-type batteries produced at the JV plant will be supplied exclusively to Honda facilities in North America. While the location for the facility is yet to be finalized, the companies plan to begin construction in early 2023 in order to enable the start of mass production of lithium-ion battery cells by the end of 2025.
“Our joint venture with Honda is yet another milestone in our mid- to long-term strategy of promoting electrification in the fast-growing North American market,” said Youngsoo Kwon, CEO of LG Energy Solution.