LG Energy Solution and Honda form joint venture to produce electric vehicle batteries in the United States

Seoul, South Korea, August 29, 2022 /PRNewswire/ — LG Energy Solution (LGES; KRX: 373220) and Honda Motor Co., Ltd. (NYSE: HMC) today announced an agreement to establish a joint venture (JV) to produce lithium-ion batteries in the United States to power Honda and Acura EV models for the North American market.

With this agreement, LGES and Honda will invest a total of USD $4.4 billion and establish a new JV factory in the United States. The plant aims to have an annual production capacity of approximately 40 GWh.

Pocket-type batteries produced at the new JV plant will be supplied exclusively to Honda facilities in North America. While the location of the joint venture plant has yet to be finalized, based on Honda’s plans for electric vehicle production in North Americathe two companies aim to begin construction in early 2023, to enable the start of mass production of advanced lithium-ion battery cells by the end of 2025.

LGES and Honda made the decision to establish the joint venture battery plant in the United States, based on the shared belief that expanding local production of electric vehicles and securing a supply of batteries in timing would put them in the best position to target the fast-growing North American market. electric vehicle market.

“Our joint venture with Honda, which enjoys an important brand reputation, is another important step in our medium to long-term strategy to promote electrification in the growing North American market,” said Youngsoo Kwon, CEO of LG Energy Solutions. “As our ultimate goal is to earn the trust and respect of our valued customers, we aspire to position ourselves as a leading battery innovator, working with Honda in delivering its key electrification initiatives, as well as only by providing sustainable energy solutions to demanding end consumers.”

“Honda is working towards our goal of achieving carbon neutrality for all products and corporate activities in which the company is involved by 2050,” said Toshihiro Mibe, president, CEO and representative director of Honda Motor Co. ., ltd. “In line with our longstanding commitment to to build products close to the customer, Honda is committed to local sourcing of EV batteries, which are an essential component of EVs. This initiative in the United States with LGES, the world’s leading battery manufacturer, will be part of such a Honda approach.”

The joint venture is expected to be established in 2022. Closing is subject to customary closing conditions, including regulatory approvals.

About LG Energy Solution

LG Energy Solution (KRX: 373220), a spin-off from LG Chem, is one of the world’s leading manufacturers of lithium-ion batteries for electric vehicles, mobility, computing and energy storage systems. With 30 years of experience in breakthrough battery technology and extensive research and development (R&D), the company is the world’s largest battery-related patent holder with over 25,000 patents. Its strong global network, which spans North America, Europe, Asia and Australia, includes battery manufacturing facilities established through joint ventures with major automakers such as General Motors, Stellantis NV and Hyundai Motor Group. At the forefront of green business and sustainability, LG Energy Solution aims to achieve carbon neutral operations by 2050, while embodying the value of shared growth and promoting a diverse and inclusive corporate culture. To learn more about LG Energy Solution ideas and innovations, visit https://www.lgensol.com.

About Honda Motor Co., Ltd.

Honda Motor Co., Ltd. (NYSE: HMC) is responsible for the development, production and sale of automobiles, motorcycles, electrical products and aeronautical products worldwide. Honda now offers more than 30 million products a year through its three product lines. Honda and its partners manufacture products at more than 60 manufacturing plants in 27 countries, employing approximately 220,000 associates worldwide. Globally by 2050, Honda is striving to achieve carbon neutrality for all company products and activities, as well as zero fatalities involving Honda automobiles and motorcycles.

SOURCE LG Energy Solutions

Comments are closed.