Honda Motor and LG Energy Solution on Tuesday announced the building of a new multibillion-dollar batteries manufacturing facility in Ohio.
The mass production of lithium-ion batteries is anticipated to start in early 2023 at the new facility, which will be built roughly 40 miles southwest of Columbus.
The unnamed joint venture is scheduled to invest a total of $4.4 billion in the battery plant, which is expected to cost $3.5 billion.
The site of the joint venture and battery plant was not disclosed when Honda and LGES first announced their plans for them last year. The firms anticipated that the plant will have around 2,200 people.
Honda announced on Tuesday that it will invest $700 million to retool many of its current auto and powertrain plants for the manufacturing of electric vehicles in addition to the new battery plant. The Japanese manufacturer expects starting North American EV production and sales in 2026.
The announcements are a part of numerous recent multibillion-dollar investments in American production of EVs and batteries in response to legislation to support domestic manufacturing as well as tighter pollution standards.
The United States-Mexico-Canada Agreement (formerly the North American Free Trade Agreement) and, more recently, the Inflation Reduction Act have harsher sourcing requirements for automakers. In order to avoid tariffs or be eligible for cash incentives, both policies increased the standards for domestically sourced automotive components and materials.
By 2040, Honda intends to phase out traditional internal combustion engines and only sell battery- and fuel cell-powered vehicles in North America. It fits into the business’s strategy to become carbon neutral by 2050.
In addition, joint ventures with General Motors, Hyundai Motor, and Jeep maker Stellantis have been announced by LGES, a spinoff from LG Chem.
- Google Drive is launching a new web “Home” page by default - November 29, 2023
- Amazon Unveils Latest AI Chip in Strengthened Partnership with Nvidia - November 29, 2023
- American Airlines Collaborates with Startup to Decrease Carbon Dioxide through Underground Storage of Plant-Based Bricks - November 29, 2023