Honda is the latest of the established automakers to announce plans to construct a battery plant in the U.S. to power future electric vehicles, joining the likes of Ford, General Motors, Hyundai Motor Group, Mercedes-Benz, Stellantis, and fellow Japanese automaker Toyota.
Honda on Monday said it will partner with LG Energy Solution to establish a joint venture to oversee production of batteries at a new U.S. plant, with the location yet to be confirmed.
The two companies will invest a total $4.4 billion in the plant which will have an annual capacity of 40 gigawatt-hours. Construction of the plant will start in early 2023 and the first batteries should be in production by the end of 2025.
The plant will produce pouch-type cells for lithium-ion batteries to be supplied exclusively to Honda's North American vehicle plants. Honda said the batteries will end up in both Honda and Acura EVs.
However, the upcoming Honda Prologue and Acura ZDX electric SUVs will use General Motors' Ultium battery technology. Those models, which are due for 2024, are being developed by GM on its Ultium EV platform and battery set.
LG Energy Solution is also working with GM to establish three battery plants in the U.S. Those plants will be used to produce Ultium batteries for multiple GM models.
Honda in April announced a wide-ranging strategy that will see the automaker invest more than $60 billion in R&D over the next 10 years, with the bulk of the funds to be spent on development of EVs, as well as software. The strategy will see Honda launch 30 EVs globally by 2030 for its Honda and Acura brands, including two sporty models, one of which is believed to be a redesigned NSX supercar.
