Honda, LG Energy Solutions to build $4.4 billion battery plant in US

On Thursday, December 21, 2017, Honda of America Manufacturing Inc. at the Marysville Auto Plant in Ohio. An employee inspects the door of a 2018 Honda Accord vehicle during production at the Marysville Auto Plant.

Die Right | Bloomberg | Good pictures

Honda Motor And LG Energy Solutions said Monday it plans to invest $4.4 billion to build a new battery manufacturing plant for electric vehicles in the United States.

The announcement marks the latest plans by automakers to invest in U.S. production of battery cells for electric vehicles, as the industry works to meet stricter regulations and accelerate production of such zero-emission cars and trucks. Others have added General Motors, Ford Motor, Rivian Automotive And Hyundai Motor.

Honda and LG Energy are expected to begin mass-producing advanced lithium-ion battery cells at their plant by the end of 2025.. The facility will be built and operated by a joint venture between the companies, which is expected to be established this year.

Many battery plant investments by automakers follow the strict sourcing guidelines of the US-Mexico-Canada Agreement (formerly the North American Free Trade Agreement) and more recently. Inflation Act. Both increased the ability to avoid import duties or qualify for financial incentives for locally sourced parts and vehicles.

Honda and LG Energy Solutions have not announced the location of the multibillion-dollar plant, but the automakers mostly have Declares battery manufacturing near their assembly proceedings. Honda currently has large manufacturing facilities in Ohio, Alabama and Indiana.

The new plant will have an annual production capacity of approximately 40 GWh. Plants were declared By other automakers. Earlier this year, Japan-based Honda plans to release 30 electric vehicles worldwide and will produce around 2 million EVs per year by 2030.

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Youngsoo Kwan, CEO of LG Energy Solutions, called the new plant “another milestone” for the South Korea-based company, which also has joint ventures with GM, Hyundai and others. Jeep maker Stellandis.

“With our long-standing commitment to creating products closer to the customer, Honda is committed to local sourcing of EV batteries, a critical component of EVs,” Honda CEO Toshihiro Mibe said in a release.

LG Energy Solutions is a spinoff from LG Chem.

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