On Monday, Honda and LG Energy Solution announced their plan to build a $4.4 billion battery factory in the U.S. for its Honda and Acura electric vehicle models. The joint press release states that both companies have confirmed the plant’s location remains unknown.
Honda and LG Energy Solutions’ announcement comes as the electric vehicle market in North America is rapidly inflating. In the press release, they acknowledge that the market expansion is why they decided to build the plant in the U.S.
LG Energy Solutions CEO Youngsoo Kwon spoke brightly about the companies’ collaboration, “Our joint venture with Honda, which has a significant brand reputation, is yet another milestone in our mid-to-long-term strategy of promoting electrification in the fast-growing North American market,”
Honda follows Hyundai, Mercedes Benz, Ford, and more automakers, who previously announced that they are building battery plants in the U.S.
The collaboration in building a battery factory in the U.S. aims for the factory’s construction to start early in 2023 and to be prepped for mass production by the end of 2025.
The plant will only distribute batteries processed in the new U.S. factory throughout Honda facilities in North America.