By Mike Murphy
Honda Motor Co. and LG Energy Solution announced plans Monday for a $4.4 billion investment to build a lithium-ion battery plant for electric vehicles in the U.S.
In a statement announcing the joint venture, the companies said construction is set to begin in early 2023 and mass production of the batteries is scheduled to begin by the end of 2025, with an annual production capacity of about 40GWh. A location has not yet been finalized.
Honda (7267.TO) and LG Energy said the plant will put them in the best position to capitalize on the expanding EV market in North America.
Also see:California bans the sale of new gasoline cars by 2035
The deal "is yet another milestone in our mid- to long-term strategy of promoting electrification in the fast-growing North American market," Youngsoo Kwon, CEO of LG Energy, said in a statement.
"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," added Toshihiro Mibe, Honda's president and CEO.
The move is part of a wider effort to boost the production of EV batteries in the U.S. In recent months, new battery factories have been announced in Indiana, Kansas and Michigan.
(END) Dow Jones Newswires
August 29, 2022 20:37 ET (00:37 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.