Honda, LG Energy to build $4.4 billion EV battery plant in US

Honda Motor and LG Energy Solution will build a new $4.4 billion lithium-ion battery plant for electric vehicles in the United States.

Both companies made the announcement on Monday.

Battery makers are looking to boost production in the U.S. where a transition toward electric vehicles (EV) could boost as the country puts stricter regulations and tightens tax credit eligibility.

The location of the plant is yet to be decided. Some say Honda is considering Ohio, where Honda’s main U.S. factory is located, for the location.

The companies aim for the annual production capacity of about 40 GWh with the batteries supplied exclusively to Honda centers in North America to power Honda and Acura EV models.

Both are expected to form a joint venture before building the plant, with the start of construction planned for early 2023 and mass-production by the end of 2025.