Ohio
Honda, LG Energy Plan $4.4 Billion EV Battery Factory in U.S.
TOKYO—
Honda Motor Co.
HMC -2.55%
and
LG Vitality Answer Ltd.
373220 -1.29%
mentioned Monday they plan to construct a $4.4 billion electric-vehicle battery manufacturing facility within the U.S., the newest tie-up between auto makers and battery suppliers looking for to increase capability by sharing upfront prices.
The businesses mentioned they plan to start building of the manufacturing facility early subsequent yr and begin mass manufacturing by the tip of 2025. The manufacturing facility goals to have an annual manufacturing capability of about 40 gigawatt-hours and can provide its output solely to Honda amenities in North America, they mentioned.
The businesses didn’t disclose the place within the U.S. the manufacturing facility can be constructed, however folks conversant in the matter mentioned it was deliberate for Ohio.
Tokyo-based Honda and South Korea’s LG Vitality be part of a rising roster of joint ventures between automobile makers and battery suppliers planning new factories within the U.S.
In January, Normal Motors Co. mentioned it will construct a $2.6 billion battery plant in Lansing, Mich., with LG Vitality. 4 months later,
Stellantis
NV and South Korea’s
Samsung SDI Co.
mentioned they might staff up on a $2.5 billion plant in Indiana.
With battery costs surging on the again of rising demand and skyrocketing uncooked materials prices, extra inter-industry partnerships are more likely to kind over the subsequent few years, based on S&P World Rankings. Auto makers are spending extra on their battery provide chains and that’s main them to go for EV tie-ups to realize economies of scale, based on a latest S&P report.
Auto makers are additionally deepening ties with the three greatest battery makers—China’s
Up to date Amperex Know-how Co.
or CATL, LG Vitality and Japan’s
Panasonic Holdings Corp.
—all of that are shifting to increase capability on their very own.
Tesla Inc.
provider Panasonic is constructing a $4 billion EV battery plant in Oklahoma, The Wall Road Journal reported final week. That comes after the Japanese firm introduced a plant of comparable dimension in Kansas in July.
S&P World Rankings expects CATL, LG Vitality and Panasonic to retain greater than 50% of the market share for EV batteries by way of 2025.
For Honda, the Ohio plant represents one of many first main investments it has made in constructing out its personal EV battery provide chain. GM and Honda are collectively creating a line of reasonably priced EVs, deepening strategic ties as they break up improvement prices.
Write to River Davis at river.davis@wsj.com and Dasl Yoon at dasl.yoon@wsj.com
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