Honda and the South Korean battery maker LG plan to build a $4.4 billion factory that would produce batteries for Honda vehicles, the companies announced Monday.
The announcement did not identify a location for the factory, but the Wall Street Journal reported that the plant is planned for Ohio. Lt. Gov. Jon Husted tweeted out the story with a note “more to come on this,” hinting that the plant will be in Ohio.
According to a news release, construction will begin early next year with the goal of producing batteries by the end of 2025 for Honda and Acura electric vehicles.
“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 Motor Co. President and CEO Toshihiro Mibe in a news release.
“Aligned with our longstanding commitment to build products close to the customer, Honda is committed to the local procurement of EV batteries which is a critical component of EVs. This initiative in the U.S. with LGES, the leading global battery manufacturer, will be part of such a Honda approach.”
LG Energy Solution, a leading manufacturer of lithium-ion batteries for electric vehicles and power systems, already makes them in joint ventures with U.S. automakers General Motors and Ford Motor Co., as well as South Korea’s Hyundai Motor Group.
“Our joint venture with Honda, which has significant brand reputation, is yet another milestone in our mid- to long-term strategy of promoting electrification in the fast-growing North American market,” Youngsoo Kwon, CEO of LG Energy Solution, said in the news release.
“Since our ultimate goal is to earn our valued customers’ trust and respect, we aspire to position ourselves as a leading battery innovator, working with Honda in achieving its core initiatives for electrification, as well as providing sustainable energy solutions to discerning end consumers.”
A new U.S. law includes a tax credit of up to $7,500 that could be used to defray the cost of purchasing an electric vehicle. But to qualify for the full credit, the electric vehicle must contain a battery built in North America with 40% of the metals mined or recycled on the continent.
Information from the Associated Press is included in this report.
@JimWeiker
