The two companies will invest a total of $4.4 billion to establish a new US plant that will eventually have an annual production capacity of approximately 40 GWh worth of batteries.
The pouch-type batteries produced at the new JV plant will be supplied exclusively to Honda facilities in North America. The location for the plant is yet to be finalized. The two companies aim to begin construction in early 2023, in order to enable the start of mass production of battery cells by the end of 2025.
“Our joint venture with Honda 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. “We aspire to position ourselves as a leading battery innovator, working with Honda in achieving its core initiatives for electrification.”
“Honda is working toward our target to realize carbon neutrality for all products and corporate activities the company is involved in by 2050,” said Honda CEO Toshihiro Mibe. “Aligned with our longstanding commitment to build products close to the customer, Honda is committed to the local procurement of EV batteries.”