LG Energy Solution announced on Monday that signed an agreement with Honda Motor to produce lithium-ion batteries in the U.S. to power its EV models in the country.
The joint venture will be established later this year and the companies will invest $4.4 billion and establish a new JV plant in the U.S. aiming to have an annual production capacity of approximately 40GWh.
The start of mass production of advanced lithium-ion battery cells will begin by the end of 2025 and the plant is scheduled to start being construction in early 2023.
“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,” Kwon added.
Toshihiro Mibe, President, CEO and Representative Director of Honda Motor said the company is “working toward our target to realize carbon neutrality for all products and corporate activities the company is involved in by 2050”.
“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,” he added.