HomeNewsHonda and LG have announced a $4.4 billion US EV battery facility.

Honda and LG have announced a $4.4 billion US EV battery facility.

Honda and LG Energy Solution have agreed to develop a $4.4 billion US factory together to produce batteries for Honda’s line of electric vehicles.

Where in the United States the factory would be built has not yet been disclosed by the partners. In a joint news statement on Monday, they stated that they intended to start building in early 2023 in order to get everything ready for mass production by the end of 2025. Since 1982, Honda has produced vehicles in its Marysville, Ohio, facility, including the Accord sedan and the midsize CR-V.

Honda and LG Energy Solution claimed that they chose the US because it would best position them to compete in the expanding North American electric vehicle industry and provide a “timely supply of batteries.”

Honda does not currently sell an electric car in the US, but the Prologue, an SUV, will go on sale there in 2024. Honda anticipates introducing 30 electric vehicle models around the globe by 2030 and selling only electric cars in North America by 2040.

Due to the new electric vehicle tax credits, which incentivize automakers to create batteries in North America, the automaker may be able to take advantage of them thanks to the facility it plans to build.

Honda announced earlier this year that it intended to invest around $36 billion in software and electric vehicles over the following ten years.

It’s not the only automaker to have made plans to produce batteries in North America in the past year or so. Hyundai announced in May that a battery facility is being built in Georgia. Ford announced last year that it would spend $11.4 billion to build two electric vehicle production campuses with LG Energy Solution rival SK Innovations. Earlier this year, Mercedes-Benz inaugurated a battery facility in Alabama. Last year, Fiat Chrysler and French manufacturer PSA group formed Stellantis, which declared with LG Energy Solution that it will construct a battery factory with the same 40 gigawatt-hour capacity as Honda.

Along with being a long-time partner of General Motors, LG is also working on two $2.3 billion projects with the automaker in Tennessee and Ohio. Additionally, LG provided the battery for the Chevrolet Bolt, which resulted in an expensive recall for which LG made a payment to GM of around $1.9 billion.

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