South Korea and Japan tie a knot together to build a new battery plant in the United States. Honda, a Japanese carmaker company, and LG Energy Solution, a South Korean battery maker company will be investing $4.4 billion in this project amidst rising pressure to boycott China out of supply chains for electric vehicles from Washington.
This is going to be the first Honda manufacturing facility for electric vehicle batteries in the US. Honda aims to finish fossil-fueled vehicles by 2040.
In this knot, where Honda will hold 49% and LG will hold 51%, looks forth to begin construction in the earlier months of 2023. By the end of 2025, mass production of lithium-ion battery cells is estimated to emerge in the market. The location of the plant is uncertain but Ohio holds Honda’s main manufacturing facility in the US.
LG Energy Solution said the companies came to the decision “based on the shared belief that expanding local electric vehicle production and ensuring the timely supply of batteries would put them in the best position to target the rapidly growing North American EV market”.