LG Energy Solutions (LGES) and Honda Motor Co. Ltd. (Honda) announced an agreement to establish a joint venture (JV) company to produce lithium-ion batteries in the United States to power Honda and Acura electric vehicle (EV) models for the North American market. With this agreement, LGES and Honda will invest a total of US$4.4 billion and establish a new JV plant in the United States. The plant aims to have an annual production capacity of approximately 40 GWh.
The pouch-type batteries produced at the new JV 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 to enable the start of mass production of advanced lithium-ion battery cells by the end of 2025.
LGES and Honda made the decision to establish the joint venture battery plant in the United States based on the shared belief that expanding local EV production and ensuring the timely supply of batteries would put them in the best position to target the rapidly growing North American EV market.
The joint venture is scheduled to be established in 2022. The closing is subject to customary closing conditions, including regulatory approvals.
