Japan’s most famous and one of the top motor brands, Honda Motors, and the South Korean big tech company LG Energy Solutions came together for the first time to build something through which they plan to rule the EV battery market of North America. As they know, North America is one of the biggest tech lover places with lots of opportunities and scope to expand more in the future. Both Companies come together for EV Battery Production in the US.
They plan to build North America’s biggest EV battery manufacturing plant with a capacity of between 30 GWH and 50 GWH, which is very high as per the current market. They will make this battery in the U.S. for Power Honda and Acura EV models. They are both going to invest 4.4 billion dollars in this joint venture and could increase the amount if necessary. In this venture, Honda has only a 49% stake while LG has a 51%, so the people who will lead the venture will probably be from LG.
In their joint venture plant in North America, they will produce pouch-type lithium-ion batteries similar to those used in personal electrical equipment such as mobile phones. The plant location is not confirmed yet but will start construction by 2023 and production by 2026, approximately.
Honda and Acura plan to launch their EVs around 2024. They will be set up on General Motors’ Ultium platform with the aim of selling approximately 70k units every year in North America. And the new venture will provide advanced batteries to Honda and Acura by 2025 in the name of “E-architecture”. And Honda has a plan to take its EV sales up to 80k or more by 2030. And Honda plans to launch 30 models of EVs by 2030. So Honda isn’t just working on batteries but in other fields too in EV manufacturing.
Many big battery plants are getting set up in North America while following the stricter sourcing guidelines that are part of the U.S.A.-Mexico-Canada free trade agreement and their respective inflation reduction acts. This will increase the chances of domestically sourced parts and materials for EVs by avoiding tariffs etc.
Many big battery plants are getting set up in North America while following the stricter sourcing guidelines that are part of the U.S.A.-Mexico-Canada free trade agreement and their respective inflation reduction acts. This will increase the chances of domestically sourced parts and materials for EVs by avoiding tariffs etc.
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As most of the tech people around the world need to know a few important details regarding these two old and gold brands, they are one of the best in their respective fields, and both countries have their own past, but the people who are leading Honda and LG came together to give the people around the world their latest tech in EV’s.
Youngsoo Kwon, CEO of LG Energy Solution, said:
“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. 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. ”
Toshihiro Mibe, President, CEO, and Representative Director of Honda Motor Co., Ltd. said:
“Honda is working toward our target to realize carbon neutrality for all products and corporate activities the company is involved in by 2050. 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 U.S. with LGES, the leading global battery manufacturer, will be part of such a Honda approach. “
