Japan’s Honda Motor and South Korean battery supplier LG Energy Solution have plans to construct a $4.4bn lithium-ion battery facility for electric vehicles in the US, reported Reuters, citing sources.
Although the companies have not selected any location for the construction of the plant, two people aware of the matter confirmed that it is expected to be built in Ohio, where Honda operates its primary US factory.
The firms are aiming for annual manufacturing capacity of almost 40GWh.
The batteries manufactured at the yet-to-be built factory will be provided only to Honda facilities in North America to power Honda and Acura EV models.
The companies are anticipated to form a JV before the construction of the plant.
Construction of the facility is expected to commence early next year and mass production by the end of 2025.
An announcement on the location of the facility is expected to be announced in weeks.
The government has been rolling out policies to boost battery and EV manufacturing in the US.
Earlier this month, US President Joe Biden had signed a $430bn climate, health care and tax bill that would make EVs assembled outside North America ineligible for tax credits.
LG Energy Solution is mainly involved in the development of lithium-ion battery materials and next generation batteries.
Earlier this year, Honda announced its plans to launch 30 EV models globally and manufacture about 2 million EVs annually by the end of this decade.
Image: The companies plan to construct a $4.4bn lithium-ion battery facility for electric vehicles in the US. Credit: andreas160578 from Pixabay.