LG Energy Solution and Honda Motor Co. Ltd. are establishing a joint venture company to produce lithium-ion batteries in the U.S. to power Honda and Acura EV models for the North American market.
They will invest a total of $4.4 billion and establish a new U.S.-based JV plant with an annual production capacity goal of approximately 40 GWh.
The pouch-type batteries produced at the new 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 in order to enable the start of mass production of advanced lithium-ion battery cells by the end of 2025.
“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,” says 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.”
“Honda is working toward our target to realize carbon neutrality for all products and corporate activities the company is involved in by 2050,” comments Toshihiro Mibe, president, CEO and representative director of Honda Motor Co. Ltd. “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.”
The joint venture is scheduled to be established in 2022. The closing is subject to customary closing conditions, including regulatory approvals.