Honda, LG Power announce $4.4 billion plan to construct EV battery manufacturing unit in U.S.

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Honda Motor Co. and LG Power Resolution introduced plans Monday for a $4.4 billion funding to construct a lithium-ion battery plant for electrical automobiles within the U.S.

In a press release asserting the three way partnership, the businesses stated building is ready to start in early 2023 and mass manufacturing of the batteries is scheduled to start by the tip of 2025, with an annual manufacturing capability of about 40GWh. A location has not but been finalized.

Honda
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and LG Power
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stated the plant will put them in one of the best place to capitalize on the increasing EV market in North America.

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The deal “is one more milestone in our mid- to long-term technique of selling electrification within the fast-growing North American market,” Youngsoo Kwon, CEO of LG Power, stated in a press release.

“Aligned with our longstanding dedication to construct merchandise near the client, Honda is dedicated to the native procurement of EV batteries which is a vital element of EVs,” added Toshihiro Mibe, Honda’s president and CEO.

The transfer is a part of a wider effort to spice up the manufacturing of EV batteries within the U.S. In latest months, new battery factories have been introduced in Indiana, Kansas and Michigan.

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