LG Energy Solution, Honda to Form US EV Battery Production

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)