Honda Motor of Japan and Korean battery supplier LG Energy Solution Ltd announced a $4.4 billion lithium-ion battery plant for electric vehicles (EV) in the United States on Monday. Battery manufacturers are trying to expand manufacturing in the United States, where a move toward electric vehicles (EV) is likely as the country imposes harsher regulations and restricts tax credit eligibility. According to the firms, the location of the plant has not been finalized, but two persons briefed on the topic corroborated claims Honda is seriously considering Ohio, where Honda’s primary U.S. manufacturing is located.
The businesses intend to produce around 40 GWh of batteries per year, with the batteries being delivered exclusively to Honda facilities in North America to power Honda and Acura EV cars. The two are anticipated to form a joint venture before constructing the factory, with construction beginning in early 2023 and mass production beginning by the end of 2025. Ohio Governor Mike DeWine stated that his administration is working with Honda and LG “to ensure that this new electric battery plant is located in Ohio.” According to people briefed on the situation, an announcement on the location could follow in the coming weeks. The United States government has been promoting legislation to increase battery and EV manufacture in the country. This month, President Joe Biden signed a $430 billion climate, health care, and tax measure that would make electric vehicles built outside of North America ineligible for tax breaks.
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