Honda and LG Energy plan joint battery factory in the US

Battery manufacturer LG Energy Solution (LGES) and carmaker Honda have announced an agreement to set up a joint venture with the aim of jointly producing battery cells for e-cars.

The plan is to produce lithium-ion batteries for Honda and Acura electric models for the North American market in Ohio, USA. The joint venture is expected to be formed later this year. The deal is subject to customary conditions, including regulatory approvals. 

As part of the cooperation, LGES and Honda intend to invest a total of just over €4.4 billion and build a new joint plant, which is expected to have an annual production capacity of about 40 GWh. The batteries produced in the new plant will be supplied exclusively to Honda plants in North America. It is planned to start construction of the plant in 2023. Mass production of batteries is then to start by the end of 2025 at the latest.

"Our joint venture with the renowned Honda brand is another milestone in our medium- to long-term strategy to drive electrification in the fast-growing North American market," Youngsoo Kwon, CEO of LG Energy Solution, commented on the deal. "Honda is working towards the goal of achieving carbon neutrality by 2050 for all products and corporate activities in which it participates," adds Toshihiro Mibe, President, CEO and Representative Director of Honda.

Honda intends to invest in electric mobility much more emphatically than before. By 2030, the Japanese manufacturer wants to spend a good 36 billion euros and launch 30 new electric models. From entry-level models for less than 10,000 euros to premium electric sports cars, there should be something for every taste and budget.