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LG, Honda announce US-based joint venture to produce batteries for EVs
The two companies will invest a total of $4.4 billion to set up a plant, the construction of which will begin early next year, a joint statement noted.
LG and Honda have come together for a United States-based joint venture (JV), for which they will invest a total of $4.4 billion to set up a plant to produce batteries for electric vehicles (EVs), the two companies have announced in a joint statement.
“Our joint venture with Honda is yet another milestone in our mid-to long-term strategy of promoting electrification in the fast-growing North American market,” said Youngsoo Kwon, Chief Executive of South Korean battery maker LG Energy Solution.
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Meanwhile, Toshihiro Mibe, Chief Executive of Japan's Honda, described the project as the automaker's next step towards its target to achieve carbon neutrality for all its products, as well as the corporate activities it is involved in, by 2050.
The LG-Honda joint venture
The statement noted that the location and site of the plant is yet to be decided. Its construction, however, will begin early next year, the released stated, adding that the plan is to begin mass production of lithium-ion battery cells by the end of 2025. The factory is likely to come up near Marysville (Ohio) or Greensburg (Indiana) as in both these cities, Honda already has factories from where it produces popular models such as Accord, CR-V and Civic.
The two firms further said that the deal is subject to regulatory approval, and the JV will be set up this year itself. Once it comes up, the plant will manufacture batteries exclusively for Honda's EVs in the North American market, they said.
LG has existing joint ventures, for lithium-ion batteries for EVs, with each of General Motors (US), Ford Motor (US), and, in its home country, with Hyundai Motor Group.
(With inputs from AP)
