JAKARTA - Honda Motor and LG Energy Solution announced on Tuesday 11 October that they will build a new combined venture battery factory worth 4.4 billion US dollars in Ohio.
The two companies announced the plan in August but have not yet set a location in the US. They said they were initially committed to investing $3.5 billion and creating 2,200 jobs but said overall investment was projected to reach 4.4 billion.
Honda will separately invest $700 million to redo some existing factories for electric vehicle production.
The Japanese automaker will repatriate three Ohio engine factories, including the world's largest engine factory and add 300 new jobs, as they move to more electric vehicle production.
Honda plans to start production and sales of Honda EVs in North America by 2026, based on the new Honda e:Architecture. But the joint venture is still awaiting regulator's approval.
The two companies plan to start construction in early 2023 and aim to complete a new facility of about 40 miles southwest of Columbus by the end of 2024.
The plant is targeted to have an annual capacity of around 40GWh as it will start mass production of lithium-ion batteries by the end of 2025.
EV batteries manufactured at the new JV plant will be given to the Honda car factory to produce EVs to be sold in North America. Honda targets to make EVs and fuel cells represent 100% of its vehicle sales by 2040.
In April, Honda and General Motors said they would develop a series of lower-price electric vehicles based on a new joint platform, potentially generating millions of cars starting in 2027 in a bid to beat Tesla in electric car sales.
The announcement expands GM's plans to start building two electric SUVs for Honda starting in 2024, the Honda Prologue and the Acura model.
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