LG New Energy and Honda formally set up a joint venture for battery production.

CTOnews.com, January 13, LG New Energy and Honda Motor Co., Ltd. today announced the formal formation of a joint venture (JV) that will produce lithium-ion batteries for Honda's electric vehicles (EV).

The joint venture will begin construction of a new battery plant at the beginning of this year, with the goal of completing construction by the end of 2024 and mass production of advanced lithium-ion battery units by the end of 2025. The goal of the plant is to have an annual production capacity of about 40GWh. All batteries produced by the new joint venture will be supplied exclusively to Honda's plants in North America to power battery electric cars sold in North America.

CTOnews.com learned that the new plant would be located in Fayette County, about 64 kilometers southwest of Columbus, near Jeffersonville. LG New Energy and Honda have pledged to invest $3.5 billion (about 23.59 billion yuan) and create 2200 jobs to build new production facilities. The total investment of these companies related to the joint venture is expected to reach 4.4 billion US dollars (about 29.656 billion yuan).