LG Energy Solution and Honda to build joint battery factory in the US
With an annual capacity of 40GWh
LG Energy Solution and Honda said on Monday that the pair plans to form a joint venture to build a battery factory in the US.
The two companies will spend a total of US$4.4 billion on the factory which will have an annual production capacity of 40GWh.
It is the first joint venture between a South Korean and Japanese battery companies.
The factory will start manufacturing pouch battery cells and modules near the end of 2025, the pair said.
The batteries made will be used in Honda and Honda Acura electric vehicles.
The US is the world’s fastest-growing electric vehicle market.
Meanwhile, LG Energy Solution is already building factories in North America on its own and through joint ventures with combined spending of over 20 trillion won.
It has three factories planned with General Motors and one with Stellantis and another on its own in Michigan.