LG Energy Solution & Honda to Form Joint Venture for EV Battery Production in the US

Korea's LG Energy Solution and Honda have announced plans to establish a joint venture (JV) battery plant in the US. The JV will  produce lithium-ion batteries to power Honda and Acura EV models for the North American market.

The two companies will invest a total of USD $4.4 billion in the JV, which is scheduled to be established in 2022.

The plant aims to have an annual production capacity of approximately 40GWh.

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.

The pouch-type batteries produced at the new JV plant will be supplied exclusively to Honda facilities in North America.

LG Energy's global network, which spans North America, Europe, Asia, and Australia, includes battery manufacturing facilities established through joint ventures with major automakers such as General Motors, Stellantis N.V. and Hyundai Motor Group. 

Youngsoo Kwon, CEO of LG Energy Solution, says: "Our joint venture with Honda, which has 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."

"Honda is working toward our target to realize carbon neutrality for all products and corporate activities the company is involved in by 2050," addsToshihiro Mibe, President, CEO of Honda Motor Co., Ltd. "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 U.S. with LGES, the leading global battery manufacturer, will be part of such a Honda approach."

Honda and its partners build products in more than 60 manufacturing plants in 27 countries, employing about 220,000 associates globally.