Honda and LG Energy Solution have entered into an agreement to establish a joint venture for the production of batteries in the USA. The batteries will be used in Honda and Acura electric models in the North American market.
Under the agreement, the Japanese carmaker and the South Korean battery supplier will invest a total of $4.4 billion in the plant, which is expected to offer an annual production capacity of about 40 GWh.
Construction of the battery factory is expected to begin in early 2023, with production scheduled to start by the end of 2025. The factory’s location has not yet been finalised. According to information from the Japanese business newspaper Nikkei, the new battery factory is to be built in Ohio, where Honda’s main plant in the USA is located.
The decision to jointly establish local production was apparently also made against the background of the new US regulations on electric car subsidies. Electric cars will only qualify for the full tax credit in the United States if they have been assembled and sourced raw materials from within North America.
Just a few days ago, Honda’s Acura brand announced its first all-electric model. The electric SUV will be called Acura ZDX and is scheduled for market launch in 2024. Acura provides a preview of the electric vehicle in the form of the Precision EV Concept. Like the Honda Prologue, the Acura ZDX will use the Ultium platform from General Motors. From 2026 onwards, the premium brand plans to launch further electric models based on Honda’s own electric architecture.
Honda itself is banking on three new all-electric vehicle platforms in its plan to achieve a sales volume of more than two million electric cars per year by 2030. The first of these is to debut as early as 2024. An electric model based on a new “large” platform will follow in North America in 2026. Then there is the recently announced new global platform in collaboration with General Motors for affordable electric vehicles. This vehicle basis is to be launched in 2027.
Keyword: Honda & LG Energy Solution to build US battery plant