Wednesday, July 24, 2024

Honda, LG Energy solution invests $4.4 billion to build EV battery production base in US

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As the electric vehicle market grows across the country, Honda Motor Co. plans to build a lithium-ion battery factory in the United States.

This Japanese car manufacturer will cooperate with LG Energy Solution Ltd, a battery supplier based in South Korea. This was explained in the company’s official statement, quoted by Reuters (30/8).

The battery factory is estimated to spend a budget of 4.4 billion US dollars. This factory was built to increase production in the United States, because in this country the use of electric vehicles is increasing. This is because the local government previously issued strict regulations regarding the eligibility of tax credits.

The location of the battery factory in the cooperation between Honda and LG has not been determined, but Ohio is one of the areas under consideration. The company targets the factory’s annual production capacity of around 40 Gigawatts (GWh). Later it will be supplied to Honda facilities in North America, used for Honda and Acura electric cars.

As reported, the United States government has pushed for policies to bring more investment in battery factories and electric vehicle manufacturers to its territory.

President Joe Biden himself signed a $430 billion climate, health care and tax bill this month. Manufacturers that assemble electric vehicles outside of North America will not be eligible for the tax credit.

LG Energy Solution to increase EV batteries supply to Ford

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