LG and Honda stated that they will start building in early 2023 to get ready for mass production by the end of 2025 in a joint news statement on Monday. to manufacture EV’s in the U.S. At its facility in Marysville, Ohio, Honda has been building vehicles like the Accord sedan and the midsize CR-V since 1982.
In order to power Honda and Acura EV vehicles for the North American market, Honda Motor Co., Ltd. (“Honda”) and LG Energy Solution have entered into a joint venture agreement (hereinafter referred to as a “JV”).
With this arrangement, Honda will contribute USD $1.7 billion to the joint venture’s capital, with a 49% ownership stake. Starting with the fiscal year that ends on March 31, 2023, the investment for the JV’s capital is expected to be made incrementally from the fiscal year ending March 31, 2023. Honda Motor Co., Ltd. (NYSE:HMC) and LG Energy Solution (LGES; KRX: 373220) today announced a joint venture (JV) firm will be established to develop lithium-ion batteries in the United States to power Honda and Acura EV models for the North American market.
With this arrangement, LGES and Honda will make a combined $4.4 billion in investments and open a new joint venture plant in the United States. The project intends to have a production capacity of about 40GWh per year. The new JV operation will supply its pouch-type batteries solely to Honda locations in North America. Based on Honda’s intentions for EV production in North America, the two firms intend to start production at the joint venture plant by the end of the year.
“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,” said Youngsoo Kwon, CEO of LG Energy Solution. “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.”
“Honda is working toward our target to realize carbon neutrality for all products and corporate activities the company is involved in by 2050,” said Toshihiro Mibe, President, CEO and Representative Director of Honda Motor Co., Ltd.
“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.”
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