Honda Motor and LG New Energy will build an electric vehicle battery factory in the United States. The two companies are expected to invest hundreds of billions of yen in the plant. Construction of the plant will start in 2023, with a target to start mass production in 2025. This will be Honda's first electric vehicle battery factory.
Honda Motor and LG New Energy will form a joint venture in Ohio to produce lithium-ion batteries. A major Honda auto plant is also reported to be located in Ohio. The basic strategy of the world's major automakers is to source batteries close to where cars are made to keep costs down.
Honda wants to secure battery supplies for its cars as the U.S. accelerates its transition to electric vehicles. Honda aims to establish a stable battery supply through its partnership with LG New Energy.
LG New Energy's share of the global battery market is second only to CATL, ranking second. In addition to GM, LG New Energy has also formed a battery joint venture in North America with Stellantis to increase its production capacity.
The battery factory that LG New Energy cooperates with GM and other companies has an annual production capacity of about 30 GWh.
Honda aims to make all of its new cars electric or fuel cell by 2040. Among them, Honda will launch two electric vehicles equipped with Ultium batteries in the United States in 2024. In 2026, Honda plans to launch an electric vehicle whose platform (chassis) will be independently developed by Honda and powered by batteries produced in a joint venture with LG New Energy. Honda plans to produce about 800,000 electric vehicles in the U.S. by 2030. The company is also considering a new production line dedicated to electric vehicles.
In the automotive battery market, CATL ranks first, followed by LG New Energy, SK Innovation, and Samsung SDI. It is estimated that by around 2025, LG New Energy, SK Innovation and Samsung SDI will have a total of 12 battery factories in North America. Japan's Panasonic is also investing heavily in the U.S., including a new electric vehicle battery factory in Kansas.
