LG, Honda Partner to Establish $4.4B EV Battery Factory on US Soil

America may be home to some of the most prominent electric vehicle makers on the globe, but THE COUNTRY has made little headway in the EV battery segment. This segment has consistently been dominated by Asian players, with companies from China and South Korea supplying many of the world’s electric vehicle battery components. As such, the U.S. government is keen on breaking Asia’s stranglehold on the electric vehicle battery space by  encouraging local battery production.

A recently announced partnership between Japanese automaker Honda and South Korean battery manufacturer LG Energy Solution will increase local production of electric vehicles. Although the partnership will be primarily driven by Asian companies, it will at least increase the number of electric vehicle battery packs that are developed and deployed within the United States. The two companies are set to invest $4.4 billion in a joint venture in the U.S. that would produce batteries for Honda EVs on the U.S. market.

The companies recently announced that they will begin construction of the battery factory in early 2023, even though they still haven’t settled on a site for the plant; mass lithium-ion battery cell production is expected to begin by the end of 2025. LG and Honda will establish the joint venture this year upon receiving regulatory approval to close the deal.

According to LG Energy Solutions CEO Youngsoo Kwon, LG’s joint venture with automaker Honda is another milestone in the South Korean battery maker’s mid-to-long-term strategy of electrification in the United States, which is currently one of the largest EV markets on the globe after China and Europe. A joint statement from both Honda and LG revealed that the factory will only produce EV batteries for the Honda EVs assembled within the U.S.

LG Energy Solutions is one of the largest players in the lithium-ion battery segment. It currently has partnerships with American automakers such as Ford Motor and General Motors and South Korea’s Hyundai Motor Group to develop lithium-ion battery packs for EVs. The battery maker will bring a wealth of knowledge and experience to its joint venture with Honda, not to mention all the supply chain connections it developed as it carved a share of the battery market for itself.

The partnership will also allow Honda to take advantage of a new EV tax credit of up to $7,500. To qualify for this credit in full, electric vehicles must be equipped with a battery pack that was manufactured within the U.S. with at least 40% battery minerals that were either mined or recycled on the North American continent.

As the regulatory environment keeps evolving in support of the electric vehicle industry, we are likely to see manufacturers such as Lucid Motors (NASDAQ: LCID) make deeper inroads into the domestic and international EV market.

About Green Car Stocks

Green Car Stocks (GCS) is a specialized communications platform with a focus on electric vehicles (EV), as well as other emerging market opportunities in the green sector. The company provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to millions of social media followers, and (5) a full array of corporate communications solutions. As a multifaceted organization with an extensive team of contributing journalists and writers, GCS is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, GCS brings its clients unparalleled visibility, recognition and brand awareness. GCS is where news, content and information converge.

To receive SMS text alerts from Green Car Stocks, text “Green” to 844-397-5787 (U.S. Mobile Phones Only)

For more information, please visit https://www.greencarstocks.com

Please see full terms of use and disclaimers on the Green Car Stocks website applicable to all content provided by GCS, wherever published or re-published: https://www.greencarstocks.com/Disclaimer

Green Car Stocks
Los Angeles, CA
415.949.5050 Office
[email protected]

Green Car Stocks is part of the InvestorBrandNetwork.


Select A Month

Contact us: (310) 299-1717