Honda, LG ink partnership to produce EV batteries in US

Honda Motor Co., Ltd. and LG Energy Solution (LGES) announced recently that they have entered an agreement that aims to establish a joint venture (JV) company to produce lithium-ion batteries in the United States.

According to Honda, the EV batteries produced through its partnership with LG will be used to power Honda and Acura EV models for the North American market.

“Honda is working toward our target to realize carbon neutrality for all products and corporate activities the company is involved in by 2050. Aligned with our longstanding commitment to build products close to the customer, Honda is committed to the local procurement of EV batteries which is a critical component of EVs. This initiative in the US with LGES, the leading global battery manufacturer, will be part of such a Honda approach,” said Honda Motor Co., Ltd. President, Chief Executive Officer (CEO), and Representative Director Toshihiro Mibe.

Both the Japanese and South Korean firms invest a total of US$4.4 billion and will establish a new facility in the US that is expected to have an annual production capacity of approximately 40 gigawatt-hours (GWh).

While the location for the joint venture plant has 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, in order to enable the start of mass production of advanced lithium-ion battery cells by the end of 2025.

“Our joint venture with Honda, which has a significant brand reputation, is yet another milestone in our mid- to long-term strategy of promoting electrification in the fast-growing North American market. Since our ultimate goal is to earn our valued customers’ trust and respect, we aspire to position ourselves as a leading battery innovator, working with Honda in achieving its core initiatives for electrification, as well as providing sustainable energy solutions to discerning end consumers,” said LG Energy Solution (LGES) CEO Youngsoo Kwon.

Honda has so far teased two all-electric vehicles in the US. One is the 2024 Honda Prologue and the Acura Precision. The batteries manufactured in Honda and LG’s US plant will most likely be used for these electric vehicles.

Photos from Honda 

Also read: 

Honda to increase production of hybrid CR-V, Accord, Civic in North America

Honda Cars PH plans to sell 1,400 HR-Vs in 2022

Honda gives JDM Fit mild updates, to be offered in 5 trims