Honda, LG Energy to build Us$4.4bil US EV battery plant

Japan’s Honda Motor Co will build a new Us$4.4bil (Rm19.7bil) lithium-ion battery plant for electric vehicles (EVS) in the United States with South Korean battery supplier LG Energy Solution Ltd, the two companies say.

Battery makers are looking to increase production in the United States where a shift toward EVS could increase as the country implements stricter regulation and tightens tax credit eligibility.

The location of the plant has not been finalised, the companies said, but two people briefed on the matter confirmed reports Honda is seriously considering Ohio, where Honda’s main US factory is located.

The companies aim for annual production capacity of approximately 40 GWH with the batteries supplied exclusively to Honda facilities in North America to power Honda and Acura EV models.

The pair are expected to establish a joint venture before building the plant, with the start of construction planned for early 2023 and mass-production by the end of 2025.

Ohio governor Mike Dewine said his administration is working with Honda and LG “to ensure that they choose Ohio for this new electric battery plant.”

The sources briefed on the matter said an announcement on the location could come in weeks.

The US government has been pushing policies designed to bring more battery and EV manufacturing into the country.

President Joe Biden signed a Us$430bil (RM1.93 trillion) climate, healthcare and tax bill this month that would render EVS assembled outside North America ineligible for tax credits. — Reuters