Honda and LG Energy to build $4.4 billion lithium-ion battery manufacturing plant

Automaker Honda has announced that it has established a joint venture with LG Energy Solution to power electric vehicles and supply batteries to the North American market. The investment size of the factory, which will start mass production in the US in 2025, is $4.4 billion. Japanese automotive giant Honda and South Korea-based LG Energy Solution, one of the largest vehicle battery manufacturers, are establishing a lithium-ion battery production facility in the US with an investment of $4.4 billion. The joint venture aims to start construction of the facility in early 2023 and mass produce lithium-ion battery cells in 2025. The two companies aim to supply batteries to the North American market. Honda Chief Executive Officer Toshihiro Mibe said in a statement, “Honda is committed to the local supply of electric vehicle batteries, a critical component of electric vehicles. This initiative in the US with LG Energy Solution, the world’s leading battery manufacturer, will be part of our company’s approach to this goal.” Another Japanese technology company, Panasonic, also announced in a statement that it is considering Oklahoma as the location of a lithium-ion battery factory that will provide high-capacity batteries for Tesla. It was announced as a new investment target, in addition to plans the Japanese electronics maker announced last month for a $4 billion facility in Kansas.