Tuesday 30 August 2022

Honda and LG Energy building $4.4bn battery plant in US

Honda and South Korean battery company LG Energy have announced plans for a $4.4 billion (£3.7bn) battery plant in the US.

The deal represents Honda’s first manufacturing facility for electric vehicles (EVs) in the country – and comes as the US looks to cut reliance on China for its electric market.

California announced earlier this week that all new petrol cars would be banned from 2035; a move that the rest of the country looks likely to follow in the coming years.

LG is set to hold a 51% stake in the plant, with Honda holding the remaining 49%.

The location of the plant is still undisclosed; however, the companies expect lithium-ion battery production to begin from 2025.

Honda Chief Executive, Toshihiro Mibe, said: “Honda is committed to the local procurement of EV batteries which is a critical component of EVs.”

“Expanding local EV production and ensuring the timely supply of batteries [will] put [both companies] in the best position to target the rapidly growing North American EV market,” a statement from LG remarked.