Honda announced that it has reached an agreement with LG Energy Solutions to establish a joint venture in the United States to produce lithium-ion batteries to supply batteries for Honda and Acura electric models in the North American market.
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Under the agreement, LGES and Honda will invest a total of US$4.4 billion with a target annual output of about 40GWh. The location of the new plant has not been finalized, but according to the plan, the two companies aim to start construction in early 2023 and start mass production by the end of 2025.
“Our joint venture with Honda has a significant brand reputation and is another milestone in our mid-to-long-term strategy to promote electrification in the fast-growing North American market,” said Youngsoo Kwon, CEO of LG Energy Solution. ”
As our ultimate goal is to earn the trust and respect of our valued customers, we aspire to position ourselves as a leading battery innovator, partnering with Honda on its core plans for electrification and delivering sustainable energy to discerning end consumers’ solutions.
“Honda is working hard to achieve our goal of achieving carbon neutrality by 2050 in all products and corporate activities the company engages in,” said Toshihiro Mibe, President, CEO, and Representative Director of Honda Motor Co., Ltd. “Based on our long-term commitment to Manufacturing products close to customers, Honda is committed to sourcing EV batteries, a key component of electric vehicles, locally. This U.S. partnership with LGES, the world’s leading battery manufacturer, will be part of Honda’s direction.
Honda executives have previously said the company plans to build millions of electric vehicles by 2030 using three new purpose-built platforms, one of which will be jointly developed with General Motors. Separately, the company plans to produce 2 million electric vehicles globally by 2030, including a mid-size vehicle being developed in partnership with General Motors.
Honda is said to aim to produce 750,000 to 800,000 electric vehicles in North America by 2030, with roughly the same amount in China, and an additional 400,000 to 500,000 electric vehicles in Japan and other markets.
