Japan’s Honda Motor Co will set up a new lithium-ion battery plant for electric vehicles in the United States with Korean battery supplier LG Energy Solution Ltd, the two companies said on Monday.
Battery makers are looking to increase production in the U.S. where a shift toward electric vehicles could increase as the country implements stricter regulation and tightens tax credit eligibility.
The investment will be $4.4 billion, the two companies said in a statement, aiming for annual production capacity of approximately 40 GWh with the batteries supplied exclusively to Honda facilities in North America to power Honda and Acura EV models.
The pair are expected to establish a joint venture before building the plant, with the start of construction planned for early 2023 and mass-production by the end of 2025.
$4.4 billion to build a manufacturing facility that can grow and provide core components throughout North and South America for decades to come. Seems smart enough to me. Too bad we haven’t more American investors with this level of cash, courage and economic understanding.