Japanese car maker Honda and South Korea’s battery supplier LG Energy Solution will set up a new lithium-ion battery plant for electric vehicles in the U.S., the two companies announced on Monday.
The $4.4 billion joint venture aims for an annual production capacity of approximately 40 GWh with the batteries supplied exclusively to Honda facilities in North America to power Honda and Acura EV models.
The location of the plant was not disclosed, however the Nikkei business daily reported they are considering Ohio, close to Honda’s main U.S. factory.
“Our joint venture with Honda is yet another milestone in our mid- to long-term strategy of promoting electrification in the fast-growing North American market,” said LG Energy Solution CEO Youngsoo Kwon.
LG has already joint ventures with General Motors and Ford, as well as Hyundai.
“Honda is working toward our target to realize carbon neutrality for all products and corporate activities the company is involved in by 2050,” said Honda CEO Toshihiro Mibe.
Both companies are planning to start construction early 2023 and mass-production by the end of 2025 as the U.S. government is pushing policies to bring more battery and EV manufacturing.
Last Friday, Panasonic announced is in talks to build an additional $4 billion EV battery plant in the U.S., adding to another $4 billion facility announced earlier this year.