Honda and LG announce $4.4 billion US battery factory for electric cars

The partners have not announced where they will build the plant in the United States. They said in detail new version On Monday they plan to begin construction in early 2023 to prepare for mass production by the end of 2025. Honda has produced cars such as the Accord sedan and midsize CR-V at its plant in Marysville, Ohio, since 1982.

Honda and LG Energy Solutions said they chose the US because local production and a “timely supply of batteries” would best position them for success in the growing North American electric vehicle market.

Honda does not currently offer an electric vehicle in the United States, but plans to launch an SUV, the Prologue, in 2024. Honda expects that Launched 30 models of electric cars Globally by 2030 and selling electric cars exclusively in North America by 2040.
The planned plant may help the automaker benefit from new tax credits on electric cars, that encourages automakers to produce batteries in North America.
Honda said Earlier this year It plans to spend about $36 billion on electric vehicles and software in the next ten years.
It’s not the only automaker that announced plans to produce batteries in North America in the past year or so. Hyundai said in May They’re building a battery factory in Georgia. Ford said last year It will invest $11.4 billion with LG Energy Solution competitor SK Innovations to build two campuses for electric vehicles. Mercedes Benz opened A battery factory in Alabama earlier this year. Stellantis, which consists of Fiat Chrysler and French automaker PSA group, announced last year With LG Energy Solution, it will build a battery plant that will produce 40 gigawatt-hours, the same capacity Honda envisions.
LG is also a longtime partner of General Motors It has projects in progress in Ohio and Tennessee which is expected to cost $2.3 billion each. LG also supplied the Chevrolet Bolt battery, which led to an expensive recall Where LG paid General Motors about $ 1.9 billion

Rob MacLean, Chris Isidore and Peter Valdes-Dapina contributed to this report.

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