Honda and LG Energy Solution to build EV battery plant worth RM 19.7 billion

Honda Motor Co., Ltd. LG and Energy Solution agreed to invest a total of RM 19.7 billion (USD $4.4) to build a battery plant in the United States to power Honda and Acura EV models for the North American market.

The joint venture is scheduled to be established in 2022. The closing is subject to customary closing conditions, including regulatory approvals.

Based on Honda's plans for EV production in North America, the partnership shares a mission to have an annual production of approximately 40GWh which begin construction in early 2023 and start the mass production of advanced lithium-ion battery cells by the end of 2025.

LGES and Honda believes that the joint venture with Honda carries significant brand reputation that carves another milestone in their mid to long term strategy of promoting electrification and ensuring the timely supply of batteries would put them in the best position to target the rapidly growing North American EV market.

“Honda is working toward our target to realize carbon neutrality for all products and corporate activities the company is involved in by 2050,” said Toshihiro Mibe, President, CEO and Representative Director of Honda Motor Co., Ltd.

As reported by Reuters, Honda is considering Ohio to become its new JV plant, although the location is yet to be finalized by the firms.