Honda Partners with LG to Upscale EV Battery Production at New US Plant

With the new California ban on gas-powered engine vehicles (by 2035)—and some states likely to follow suit—the pressure to scale up production and make these cars more accessible is certainly growing. Whether this shift—in some states—has any influence or not, Honda Motor Company has recently partnered with LG Energy Solutions to develop a new battery production plant in the United States.

In a recent statement, Honda Chief Executive Toshihiro Mibe said, “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.”

Accordingly, the new $4.4 billion partnership will see the construction of a EV-battery production facility in Ohio. While the exact site for the plant is yet to be decided, construction will start within the next six months with the goal to meet production needs of advanced lithium-ion battery cell technology by the end of 2025. It appears, however, the ideal locations would be near Marysville, OH or perhaps nearby Greensburg, IN, which is where Honda already has giant factories that produce some of their most popular vehicle models including the Accord, the Civic, and the CR-V.

LG Energy Solution Chief Executive Youngsoo Kwon also comments, “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.”

Zero-emission cars and trucks are growing in popularity. This is apparent not only in their increase in sales but in the fact that many major automotive companies have put more attention on their development. This includes not only Honda but also Hyundai Motor, General Motors, and Ford Motor. It has also encouraged startups like Rivian Automotive to get into the game.

Of course, it also help that a new US law offers great incentive to consumers who purchase electric vehicles. This incentive includes a tax credit up to $7,500 to help assuage the total cost of this purchase. To qualify for all the tax credits, though, the EV must use a battery that was a) built in North America and b) us at least 40 percent metals mined or recycled in North America.