Honda (NYSE: HMC) and LG Energy Solution have revealed that they plan to invest USD4.4 Billion to build a new battery production plant for electric vehicles within the U.S. The companies have yet to disclose where in the country they will build the factory. Nevertheless, in a joint news release, they said that construction is expected to begin at the beginning of 2023.
According to the companies, the plant is expected to begin mass production of advanced lithium-ion battery cells by the end of 2025. Furthermore, the plant will aim to have an annual production of about 40-gigawatt hours. The factory will be built and run by a joint venture between the companies, which is set to be established this year.
The companies chose to build the plant in the U.S. because the local production and a “timely supply of batteries” would be the best environment to succeed in the North American EV market.
“Aligned with our longstanding commitment to build products close to the customer, Honda is committed to the local procurement of EV batteries which is a critical component of EVs,” said Honda CEO Toshihiro Mibe in a release.