Honda Motor, LG Energy form JV for electric vehicle battery production in the US

Honda Motor and LG Energy Solution have formed a joint venture for the production of electric vehicle batteries in the United States. The companies are investing in building their plant for the JV in Ohio.

Honda Motor is planning open a new lithium-ion battery factory for EVs in the U.S., and it will do so in partnership with LG Energy Solution. The teaming up of the Japanese and South Korean companies was confirmed on Monday, Aug. 29.

More and more battery makers are working to boost their production in the U.S. as it is shifting to electric vehicles faster than any other country. This is because the region is now starting to implement tougher regulations on carbon emissions plus it has also tightened tax credit eligibility of the buyers, as per Reuters.

Furthermore, President Joe Biden’s administration has been creating policies designed to encourage attract more EV battery producers and automakers to do business in the country.

In fact, the American leader inked a $430 billion climate, tax bill, and health care just this month which will make electric vehicles made or assembled outside of North America unqualified for tax credits.

In any case, Honda Motor and LG Energy Solution are setting up their joint venture in Ohio. The construction is expected to begin next year, and mass production of EV batteries is expected to follow by 2025.

"Our joint venture with Honda, which has a significant brand reputation, is yet another milestone in our mid to long-term strategy of promoting electrification in the fast-growing North American market," LG Energy Solution’s chief executive officer, Kwon Young Soo, said in a press release.

The CEO added, “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.”

Honda Motor’s president, CEO and representative director, Toshihiro Mibe further said that they are working to realize the company’s goal of carbon neutrality for all of its products and corporate activities by the year 2050. Regarding Honda’s collaboration with the Korean battery maker, the chief said, “This initiative in the U.S. with LGES, the leading global battery manufacturer, will be part of such a Honda approach.”