Honda has struck a deal with Korean battery producer LG Energy Solution to build a $4.4 billion United States factory to supply its electric vehicles.
The companies have yet to announce where in the United States the factory will be built. In a joint press release on Aug. 29, Honda and LG Energy Solutions said they plan for construction to begin early in 2023, with the factory expected to begin mass production by the end of 2025.
Honda has produced cars at its factory in Marysville, Ohio since 1982. According to the partners, a “timely supply of batteries” will best position the companies to succeed in the growing electric vehicle market in North America. In 2024, Honda plans on launching its electric SUV, the Prologue. The company plans to launch 30 electric vehicles by 2030 and to only sell electric vehicles in North America by 2040.
Honda plans to spend approximately $36 billion over the next decade on electric vehicles and software. In May, Hyundai said it would build a battery plant in Georgia. Earlier this year, Mercedes-Benz opened a battery plant in Alabama. LG and General Motors have projects in Ohio and Tennessee expected to cost approximately $2.3 billion each.
White House Deputy National Climate Advisor Ali Zaidi acknowleged the Honda LG “massive investment” in a tweet:
File it under — didn’t happen by accident:
— Ali Zaidi (@alizaidi46) August 29, 2022
U.S. Energy Secretary Jennifer Granholm tweeted:
Big things happen when the public and private sectors work together 🤝
Thanks to @POTUS’ agenda, we're able to bring back the domestic manufacturing of batteries to provide Americans with good-paying jobs that will power the EV revolution. Onwards!https://t.co/Eamzc2fBj6
— Secretary Jennifer Granholm (@SecGranholm) August 29, 2022
Last week, California announced that there is a plan requiring that all new vehicles sold in the state must be either electric or plug in electric hybrids by 2035.