LG Energy Solution and Honda Motor Co., Ltd. announced a joint venture (JV) company to manufacture lithium-ion batteries in the US to power Honda and Acura EV models for the North American market. LGES and Honda will invest a combined $4.4 billion in this agreement to build a new JV plant in the US. The project intends to have a production capacity of about 40 GWh per year.
The new JV operation will supply its pouch-type batteries solely to Honda facilities in North America. Based on Honda’s plans for EV production in North America, the two firms aim to begin developing the joint venture plant in early 2023 in order to start mass production of advanced lithium-ion battery cells by the end of 2025, while the exact location has not yet been determined. In February 2022, LG Electronics opted to exit the global solar panel market in order to focus on other energy-related industries. The decision was authorised by LG’s board of directors in South Korea, citing the effects of rising material and logistics costs, as well as supply restrictions. In the future, the company intends to concentrate on other high-growth areas, such as energy storage systems and home energy management.