Honda, LG Energy Solution Join Forces To Setup $4.4B Battery Plant In Ohio

Honda Motor Co Ltd HMC and LG Energy Solution have selected Ohio to build their battery plant with an investment of $4.4 billion.
The two companies announced the plan in August but did not announce the location. They said they are committing to investing $3.5 billion and creating 2,200 jobs but said the overall investment is projected to reach $4.4 billion.
Honda plans to begin production and sales of Honda EVs in North America in 2026, based on its new Honda e-Architecture. The EV batteries produced at the new JV plant will be provided to Honda auto plants to produce EVs to be sold in North America.
The two companies plan to begin construction in early 2023 and aim to complete the new facility by the end of 2024.
The plant aims to have approximately 40GWh of annual capacity as it starts mass production of lithium-ion batteries by the end of 2025.
Honda aims to make EVs and fuel cell represent 100% of its vehicle sales by 2040.
In April, Honda and General Motors Co GM said they would develop a series of lower-priced electric vehicles based on a new joint platform, producing potentially millions of cars from 2027 to beat Tesla Inc TSLA in sales.
Price Action: HMC shares are up 0.29% at $22.14 on the last check Tuesday.