Honda and LG Energy Solution to Invest $4.4B to Build EV Battery Plant in the U.S.

241
SHARE

Honda and LG Energy joined a list of automakers including Ford Motor Company (NYSE: F), General Motors (NYSE: GM), Hyundai Motor Company (OTCMKTS: HYMTF), and Rivian Automotive (NASDAQ: RIVN) that are investing in EV battery factories.

Automakers are investing in EV battery plants following the United States-Mexico-Canada Agreement and the recently approved Inflation Reduction Act. Both implement more stringent rules that affect the EV supply chain and incentivize investment, production, and employment in the North American automotive sector.

LG Energy CEO Youngsoo Kwon said the joint venture’s ultimate goal is to become the “leading battery innovator” and to provide sustainable energy solutions to consumers.

“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,” added Youngsoo.

On the other hand, Honda CEO Toshihiro Mibe said, “Aligned with our longstanding commitment to build products close to the customer, Honda is committed to the local procurement of EV batteries which is a critical component of EVs. This initiative in the U.S. with LGES, the leading global battery manufacturer, will be part of such a Honda approach.”