Honda and LG announce $4.4 billion car battery plant in Ohio

Honda Motor and LG Energy Solutions said on Tuesday that they will build a new joint venture in Ohio, the United States, to build a car battery plant at a cost of $ 4.4 billion (about 31.416 billion yuan). The two companies announced the plan in August but had not previously confirmed a U.S. location. They said an initial commitment to invest $3.5 billion (about 24.99 billion yuan) to create 2,200 jobs, but expect the total investment to reach $4.4 billion.

Honda will separately invest US$700 million (about 4.998 billion yuan) to retrofit several existing factories with electric vehicle production machines. Honda will restructure three Ohio engine plants, including the world's largest, and add 300 new jobs. Honda plans to start producing and selling Honda electric vehicles in North America in 2026.

Currently, the joint venture is awaiting U.S. regulatory approval. Construction of the new facility is scheduled to begin in early 2023, approximately 40 miles southwest of Columbus, and is scheduled to be completed by the end of 2024.

The factory aims to start mass production of lithium-ion batteries by the end of 2025, with an annual production capacity of about 40GWh. Electric vehicle batteries produced at the new joint venture plant will be supplied to the Honda plant to produce electric vehicles for sale in North America. Honda aims to have electric vehicles and fuel cells account for 100 percent of its vehicle sales by 2040.

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