LG Energy Solution and Honda are to establish a joint venture (JV) company to produce lithium-ion batteries in the US to power Honda and Acura EV models for the North American market. The two companies will invest a total of US$4.4bn and establish a new JV plant in the US, aiming to have an annual production capacity of approximately 40GWh.
“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,” said Youngsoo Kwon, CEO of LG Energy Solution. “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.”
The pouch-type batteries produced at the plant will be supplied exclusively to Honda facilities in North America. The location for the plant is yet to be finalized and will be based on Honda’s plans for EV production in North America. The two companies hope to begin construction in early 2023, targeting a start of mass production of battery cells by the end of 2025.
“Honda is working toward our target to realize carbon neutrality for all products and corporate activities the company is involved in by 2050,” added Toshihiro Mibe, president, CEO and representative director of Honda Motor Company. “Aligned with our longstanding commitment to build products close to the customer, Honda is committed to the local procurement of EV batteries, which are 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.”