Honda & LG Energy Solutions Building $4.4 Billion Battery Factory In US

Honda has become the latest major automaker to announce plans for a dedicated battery facility in the US. It has partnered with LG Energy Solutions for pouch-style batteries in a facility that will cost $4.4 billion to build. The batteries produced at this facility will be used to power Honda and Acura brands in the US.

This is a joint venture to be precise and is subject to regulatory approval and the construction will start only next year with mass production for lithium-ion cells starting by the end of 2025.

“Honda is committed to the local procurement of EV batteries which is a critical component of EVs. This initiative in the U.S. with LGES, the leading global battery manufacturer, will be part of such a Honda approach,” said Honda CEO and President Toshihiro Mibe.

In the US, there is $40 billion in tax credits included in the inflation reduction act passed by the Congress this month which has resulted in many automakers announcing manufacturing plans in the US. This comes after Panasonic which has been a long Tesla partner targeting Oklahoma for lithium-ion batteries for the world’s largest EV maker. This will be in addition to its $4 billion investment in the new Kansas plant which will be one of the largest battery manufacturing facilities in the world.

Hyundai also has a new EV plant in Savannah which represents the largest economic development deal recruited by the state of Georgia. Toyota, Honda’s biggest Japanese rival, has also planned to open its first US battery factory which will involve a $1.3 billion investment in North Carolina in 2025. Finally, is Canoo which has its headquarters in Bentonville, Arkansas and it also has plans to build an EV factory in Oklahoma.