Honda announced that it will build a battery plant in the United States with LG Energy, with a total investment of US $4.4 billion.
CTOnews.com, August 29 (Xinhua)-- Honda today announced an agreement with LG Energy Solutions to set up a joint venture in the United States to produce lithium-ion batteries for Honda and Acura electric models in the North American market.
Under the agreement, LGES and Honda have a total investment of $4.4 billion, with a target annual production target of about 40GWh. The location of the new plant has not yet been finalized, but according to the plan, the two companies aim to start construction in early 2023 and mass production by the end of 2025.
"our joint venture with Honda has a significant brand reputation, which is another milestone in our medium-and long-term strategy to promote electrification in the fast-growing North American market," said Youngsoo Kwon, chief executive of LG Energy Solution. As our ultimate goal is to win the trust and respect of our valued customers, we are eager to position ourselves as a leading battery innovator and work with Honda to achieve its core electrification plan. and provide sustainable energy solutions for picky end consumers.
"Honda is working to achieve our goal of carbon neutralization of all products and corporate activities that the company participates in by 2050," said Toshihiro Mibe, president, CEO and representative director of Honda Motor Co., Ltd. "based on our long-term commitment to manufacturing products close to our customers, Honda is committed to locally purchasing EV batteries, a key component of electric vehicles. The move by the United States in partnership with LGES, the world's leading battery maker, will be part of Honda's direction.
Honda executives had previously said the company planned to use three new dedicated platforms to produce millions of electric vehicles by 2030, one of which would be developed jointly with GM. In addition, the company plans to produce 2 million electric vehicles worldwide by 2030, including medium-sized cars being developed in partnership with General Motors.
Honda is said to aim to produce 750000 to 800000 electric vehicles in North America by 2030, roughly the same in China, and another 400000 to 500000 in Japan and other markets.
CTOnews.com learned that Honda Motor (China) Co., Ltd., founded on September 8, 2003, is the first vehicle manufacturer in Chinese automobile history to export 100% of its products.
