LG Energy Solution and Honda establish a joint venture to produce EV batteries in the US

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2022-09-06 19:18:41

(CHK) August 29, 2022 – LG Energy Solution (LGES; KRX: 373220) and Honda Motor Co., Ltd. (NYSE: HMC) announced the creation of a lithium-ion battery joint venture in the United States to power Honda and Acura electric vehicles for the North American market.

With this agreement, LG Energy Solution and Honda will invest a total of $4.4 billion, establishing a new joint venture plant in the United States with an estimated annual capacity of 40GWh.

The bag batteries produced at the new joint venture will be supplied exclusively to Honda facilities in North America. Although the location of the joint venture plant has not been determined yet, based on Honda’s electric vehicle production plan in North America, the two companies are expected to start construction in early 2023. to begin mass production of advanced lithium-ion batteries by the end of 2025.

LG Energy Solution and Honda have decided to set up a joint venture battery factory in the United States, with the expectation that expanding production of electric vehicles in the domestic market and ensuring a timely battery supply will be the best foundation for creating new batteries. premise to target the rapidly growing electric vehicle market in North America.

Mr. Youngsoo Kwon, CEO of LG Energy Solution said: “The joint venture with Honda, a reputable company and brand, is an important milestone in our mid- to long-term strategy to drive electrification in the rapidly growing North American market. As our ultimate goal in working with Honda is to win the trust and respect of our customers, with our aspiration to become a leading advanced battery manufacturer, achieving core initiatives in electrification, as well as providing sustainable energy solutions to end consumers.”

Mr. Toshihiro Mibe, President, CEO and Representative Director of Honda Motor Co., Ltd. said: “Honda is working towards its goal of being carbon neutral for all of its products and businesses by 2050. In keeping with its longstanding commitment to building products that are eco-friendly. customers, Honda is committed to purchasing electric vehicle batteries – the most important part of electric vehicles in the domestic market – an important part of electric vehicles. This initiative in partnership with LG Energy Solution in the US market, the world’s leading battery manufacturer, will be part of Honda’s approach.”

The joint venture is expected to be established in 2022.

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