Honda Is the Latest Automaker Looking To Build a US Battery Factory

An anonymous reader quotes a report from Ars Technica: North American lithium-ion battery production is set to soar over the next decade. The Biden administration and Congress have both put policies in place to incentivize domestic manufacturing over imports, and startups, battery companies, and automakers are responding. Honda and LG Energy Solutions are the most recent to make moves; on Monday morning, the companies announced that they are forming a $4.4 billion joint venture to build a US battery factory. "Our joint venture with Honda, which has significant brand reputation, is yet another milestone in our mid- to long-term strategy of promoting electrification in the fast-growing North American market," said Youngsoo Kwon, CEO of LG Energy Solution. "Since our ultimate goal is to earn our valued customers' trust and respect, we aspire to position ourselves as a leading battery innovator, working with Honda in achieving its core initiatives for electrification, as well as providing sustainable energy solutions to discerning end consumers." 2025 is when Honda and LG are targeting mass production at this newest joint venture. It's too soon for them to have finalized a site for this factory, but the companies say they plan to begin construction early next year. The battery factory will make pouch cells, with an annual capacity of 40 GWh. "Honda is working toward our target to realize carbon neutrality for all products and corporate activities the company is involved in by 2050," said Toshihiro Mibe, president and CEO of Honda Motor Company. "Aligned with our longstanding commitment to build products close to the customer, Honda is committed to the local procurement of EV batteries which is a critical component of EVs. This initiative in the US with LGES, the leading global battery manufacturer, will be part of such a Honda approach."

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