LG Energy and Honda to form EV battery production JV
LG Energy Solution and Honda Motor has reached an agreement to establish a joint venture company to produce lithium-ion batteries in the U.S. to power Honda and Acura EV models for the North American market.
The companies will invest a total of USD 4.4 billion and establish a new JV plant in the U.S. According to a press release the joint plant aims to have an annual production capacity of approximately 40GWh.
The pouch-type batteries produced at the new JV plant will be supplied exclusively to Honda facilities in North America. While the location for the joint venture plant is yet to be finalised, based on Honda’s plans for EV production in North America, 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 joint venture is scheduled to be established in 2022. The closing is subject to customary closing conditions, including regulatory approvals.