LGES and Honda will establish a new battery manufacturing facility in the US, which will produce around 40GWh of pouch-type batteries, to be supplied exclusively to Honda facilities in North America
LGES, Honda Motor to produce EV batteries in the US. (Credit: Hadi Yazdi Aznaveh on Unsplash)
South Korea-based battery manufacturer LG Energy Solution (LGES) and Japanese automobile company Honda Motor have agreed to form a new joint venture (JV) company.
The new JV will focus on production of lithium-ion batteries in the US, to power Honda and Acura EV models for the North American market.
Under the terms of the agreement, LGES and Honda will invest a total of $4.4bn to establish a new US plant, with annual production capacity of around 40GWh.
The new battery production facility in the US will produce pouch-type batteries that will be supplied exclusively to Honda facilities in North America.
The new JV will be established this year, and start the construction of new battery plant in early 2023, based on Honda’s plans for EV production in North America.
It will start mass production of advanced lithium-ion battery cells by the end of 2025.
LG Energy Solution CEO Youngsoo Kwon said: “Our joint venture with Honda, which has 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.”
LG Energy Solution, a subsidiary of LG Chem, is a global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems.
The company has 30 years of experience in advanced battery technology and extensive R&D capabilities, along with more than 25,000 battery-related patents.
It has a global network of battery manufacturing facilities, established through JV with major automakers including General Motors, Stellantis and Hyundai Motor Group, etc.
Honda Motor is engaged in development, production and sales of automobiles, motorcycles, power products and aviation products worldwide.
Together with its partners, the company offers automobile products and services in more than 60 manufacturing plants across 27 countries, with nearly 220,000 associates.
Honda Motor president, CEO and representative director Toshihiro Mibe 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 US with LGES, the leading global battery manufacturer, will be part of such a Honda approach.”