Honda, LG Energy Plan To Sink $4.4B Into U.S. Battery Plant For Electric Vehicles
A $4.4B U.S. electric vehicle battery plant is in the works by Japanese car manufacturer Honda Motor Co.
The lithium-ion plant, expected to break ground early next year, will be built in partnership with Korean battery supplier LG Energy Solution, according to a joint announcement reported by Reuters. A location has yet to be determined, but the companies are said to be considering Ohio, where Honda's main U.S. factory is located.
The move comes as the U.S. government enacts policies to encourage more American-made electric cars. A sweeping $430B climate, healthcare and tax bill signed by President Joe Biden earlier this month will make EVs manufactured overseas ineligible for tax credits, per Reuters.
Honda, which plans to produce 2 million electric cars a year by 2030, is among several automobile manufacturers planning to ramp up EV production. Elon Musk said he hopes to unveil the location of another Tesla gigafactory location before the end of this year, and Hyundai has announced its first U.S.-based EV and battery manufacturing plant in Georgia, which is expected to produce 300,000 cars once fully operational in 2025, according to Forbes.
The batteries made at the Honda plant will be used to power Honda and Acura EV models exclusively sourced in North America, according to Reuters. Mass production is expected by the end of 2025.
