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18 Jan Honda and LG Energy Solution to Produce EV Batteries in Ohio
Honda[7267:JP] and LG Energy Solution announced the formal establishment of a joint venture (JV) to mass produce lithium-ion batteries for electric vehicles (EV) produced by Honda, as reported by ESG Today on January 16. The new JV, named L-H Battery Company, will construct a USD3.5bn plant in Ohio, US. The new facility will begin construction early this year, with plans to begin mass production of advanced lithium-ion battery cells by the end of 2025, and an anticipated annual production capacity of approximately 40 gigawatt-hours (GWh).
Honda has set aggressive goals for the electrification of its vehicle fleet, including a target to make battery-electric and fuel cell electric vehicles represent 100% of its vehicle sales by 2040, with a progression from sales of 40% by 2030 and 80% by 2035 in all major markets, including North America. The establishment of L-H Battery Company is a significant step towards Honda’s goal as it will provide the company with the necessary battery production capacity to meet the growing demand for electric vehicles. The two companies have projected their overall investment related to the JV to reach USD4.4bn. This investment is expected to create jobs and grow the community by providing top-quality batteries to ensure the successful launch of Honda EVs in North America.