Honda, LG Energy prepare to build $4 billion EV battery plant in the US

In a recently released statement, Honda Motor Company and South Korean battery maker LG Energy Solutions plan to invest $4.4 billion in a US battery plant to build lithium-ion batteries for electric vehicles. A location for the plant was not mentioned in the statement released on Monday, but construction is scheduled to begin in early 2023, with mass production ready to start by the end of 2025. Honda plans to produce about 800,000 electric vehicles in North America by 2030, underscoring the company’s need for an increase in battery supply. 

Honda has a plan to invest 5 trillion yen ($36.35 billion) over the next ten years in electrification and software. The company will roll out 30 full-electric vehicles globally and build its capacity to handle 2 million EVs annually by 2030.

The future US plant will be a crucial component in helping the companies comply with requirements for EV incentives as part of the Inflation Reduction Act, which states that companies must source battery materials from countries that have free-trade agreements with the US. The regulations also note that a certain percentage of the battery must be manufactured in North America.

LG Energy Solution has current partnerships with several automakers, including General Motors, Stellantis, and Hyundai Motor Group. The company recently announced plans to partner with GM to open a fourth battery-cell manufacturing plant in Indiana as part of a joint venture with Ultium Cells LLC. Meanwhile, Honda has plans to introduce its own EVs manufactured in North America for the 2026 model year. Acura has teased its own EV, called the ZDX, as part of a partnership built with GM.

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