Explore the latest trends and actionable insights on the Global Electric Vehicles market to inform business strategy and pinpoint opportunities and risks

Honda Motor, LG Energy to Invest in EV Battery Plant

  • Honda Motor and LG Energy Solution intend to invest $4.4 billion in a new battery factory for electric vehicles in the US
  • The factory is expected to begin the production of sophisticated lithium-ion battery cells in large quantities by the end of 2025
  • With this announcement, Honda Motor and LG Energy Solution join the string of manufacturers who unveiled plans to invest in the US to manufacture battery cells for electric vehicles

On August 29, 2022, Honda Motor and LG Energy Solution announced plans to invest $4.4 billion in a facility in the US for the manufacture of batteries for electric vehicles (EVs).

As the industry seeks to comply with stiffer restrictions and accelerate the manufacture of zero-emission cars and trucks, the announcement by Honda and LG Energy highlights the ambitions of automakers to invest in the US in the production of battery cells for EVs. General Motors, Ford Motor, Rivian Automotive, and Hyundai Motor were among the companies that announced plans to invest in the production of battery cells for EVs.

According to Honda and LG Energy, the mass production of sophisticated lithium-ion battery cells is expected to start at the new facility by the end of 2025. A joint venture between the two companies, which is expected to be launched in 2022, will construct and manage the facility. Even though the site of the facility is yet to be decided, Honda prefers Ohio, home to its primary production in the US, as the site for the new facility.

To power Honda and Acura EV cars, the two companies plan to supply the batteries exclusively to Honda’s facilities in North America, with an annual production capacity of 40 GWh.

Construction is expected to begin in early 2023 and mass production is anticipated to commence by the end of 2025. This move is part of a larger initiative to increase EV battery manufacture in the US. In recent months, new battery facilities have been announced in Indiana, Kansas and Michigan.

Explore the latest trends and actionable insights on the Global Electric Vehicles market to inform business strategy and pinpoint opportunities and risks Explore the latest trends and actionable insights on the Global Electric Vehicles market to inform business strategy and pinpoint opportunities and risks Visit Report Store
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