LG Energy Solution* (LGES: KRX 373220) and Honda Motor Co. (NYSE:HMC) today announced they will form a joint venture (JV) company to produce lithium-ion batteries in the U.S. to power Honda and Acura EV models for the North American market. With this agreement, LGES and Honda claim they will invest a total of $4.4 billion and establish a new JV plant in the US. The pouch-type batteries made at the new plant will be supplied exclusively to Honda factories in North America.
The two companies want to begin construction in early 2023 with the start of mass production of advanced lithium-ion battery cells by the end of 2025. The plant will have an annual production capacity of ~40GWh but the location has not yet been established. Let the taxpayer-financed bidding war on incentives among the states begin.
“LGES and Honda made the decision to establish the joint venture battery plant in the U.S., based on the shared belief that expanding local electric vehicle production and ensuring the timely supply of batteries would put them in the best position to target the rapidly-growing North American EV market” LGES and Honda said in a joint release early this morning from Korea. The closing is subject to customary closing conditions, including regulatory approvals.
*LG Energy Solution (KRX: 373220), a split-off from LG Chem, is a global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. With 30 years of experience claims to be the top battery-related patent holder in the world with more than 24,000 patents. It operates in North America, Europe, Asia, and Australia, includes battery manufacturing facilities established through joint ventures with major automakers such as General Motors, Stellantis N.V. and Hyundai Motor Group.(AutoInformed.com on: Stellantis, LG Energy Solution JV for Battery Plant in Canada; GM and LG Energy to Build Second Battery Cell Plant in US; GM and LG Chem Have Deal on Battery Materials)
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
LG Energy Solution, Honda to Form US EV Battery Production
The two companies want to begin construction in early 2023 with the start of mass production of advanced lithium-ion battery cells by the end of 2025. The plant will have an annual production capacity of ~40GWh but the location has not yet been established. Let the taxpayer-financed bidding war on incentives among the states begin.
“LGES and Honda made the decision to establish the joint venture battery plant in the U.S., based on the shared belief that expanding local electric vehicle production and ensuring the timely supply of batteries would put them in the best position to target the rapidly-growing North American EV market” LGES and Honda said in a joint release early this morning from Korea. The closing is subject to customary closing conditions, including regulatory approvals.
*LG Energy Solution (KRX: 373220), a split-off from LG Chem, is a global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. With 30 years of experience claims to be the top battery-related patent holder in the world with more than 24,000 patents. It operates in North America, Europe, Asia, and Australia, includes battery manufacturing facilities established through joint ventures with major automakers such as General Motors, Stellantis N.V. and Hyundai Motor Group.(AutoInformed.com on: Stellantis, LG Energy Solution JV for Battery Plant in Canada; GM and LG Energy to Build Second Battery Cell Plant in US; GM and LG Chem Have Deal on Battery Materials)
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.