Honda Motor, LG Energy to build $4.4b EV battery plant in US

Honda Motor and LG Energy Solutions announced their intention on Monday to establish a new Electric Vehicle (EV) battery plant costed $4.4 billion in the U.S. and the mass production is scheduled to start later in 2025.

The plant is expected to have an annual capacity of about 40 gigawatt-hours Honda said in a company filing, the location doesn’t decide yet.

The cooperation will help the Japanese automaker to phase out fossil fuel vehicles entirely by 2050, Honda CEO Toshihiro Mibe, added in the statement.

The duo will set up a joint venture this year in which Honda will hold 49 percent stake by investing $1.7 billion, while the construction phase is expected to start by early 2023.

Honda meanwhile plans to spend $36 billion on its push into EVs over the next decade by launching some 30 new models. The new plant will produce pouch-type cells for Honda and Acura’s EVs.

This considers as one of the most aggressive expansions of electrification in Japan.

South Korea’s trade minister Lee Chang-yang said on Monday he will seek cooperation with Japan and European nations to ease requirements on EV and battery makers.