LG & Honda to form Joint Venture to manufacture EV batteries in the U.S.

By Sakina Raj  | Date: 2022-08-30

LG & Honda to form Joint Venture to manufacture EV batteries in the U.S.

LG Energy Solution, a leading energy solutions provider and Honda Motor Co., a Japanese public multinational conglomerate, have recently announced entering into a pact to form a JV (joint venture) firm for producing lithium-ion batteries in the United States to power Acura EV and Honda models for the North American market.

Under this agreement, LGES & Honda will invest a sum of $4.4 billion and develop a new JV plant in the US. The plant is designed to achieve an annual production capacity of nearly 40GWh.

Reportedly, the pouch-type batteries manufactured at the new JV plants will be exclusively supplied to Honda facilities in North America.

However, the location for the joint venture place is yet to be finalized.

Given the long-term vision of Honda for EV production in North America, both the companies plan to commence construction in early 2023 to establish the mass production of cutting-edge lithium-ion battery cells by the end of 2025.

It is vital to note that the decision to create a joint venture battery plant in the US comes along the shared belief of LGES and Honda, according to which expanding the production of local electric vehicles and guaranteeing the timely supply of batteries will enable them to stand in the best position in the burgeoning North American EV market.

Commenting on the latest move, Youngsoo Kwon, CEO, LG Energy Solution, stated that this JV with Honda is a recent significant breakthrough in LG’s strategy of encouraging electrification in the fast-growing North American market.

Moving ahead in its goal to earn the trust and respect of valued customers, the firm inspires to become a leading battery innovator in collaboration with Honda to achieve its essential electrification initiatives and deliver sustainable energy solutions to the end consumers.

The joint venture is expected to be established in 2022, subject to standard closing conditions, including governing approvals.

Source credit - https://www.prnewswire.com/news-releases/lg-energy-solution-and-honda-to-form-joint-venture-for-ev-battery-production-in-the-us-301613610.html

About Author

Sakina Raj     aeresearch.net

Sakina Raj

Armed with a degree in English Literature, Sakina chose to explore the world of content writing and pursue it as a career. Sakina has been playing with words for over five years now and currently pens down articles relating to diverse domains for BonafideNews and vari...

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