Honda continues its efforts to accelerate its electric vehicle (EV) development efforts amid the rising demand for EVs.
In the latest development, Honda has partnered with LG to develop EV batteries. The partnership will see both companies invest $4.4 billion to set up a joint manufacturing facility in the US, with an annual production capacity of 40 GWh. Reports suggest that LG will supply these batteries exclusively to Honda.
The companies seek to begin construction of the facility in 2023, although its location is not yet final. They plan to begin producing battery cells by 2025. Commenting on the development LG’s CEO Youngsoo Kwon said:
Our joint venture with Honda, which has significant brand reputation, is yet another milestone in our mid- to long-term strategy of promoting electrification in the fast-growing North American market. Since our ultimate goal is to earn our valued customers’ trust and respect, we aspire to position ourselves as a leading battery innovator, working with Honda in achieving its core initiatives for electrification, as well as providing sustainable energy solutions to discerning end consumers.
Earlier this year, Honda’s new CEO Toshihiro Mibe announced it will form multiple partnerships to speed up EV development. The company already boasts a partnership with General Motors (GM), Ford, and SES Holdings (US-based battery maker).
Mibe also plans for Honda to go fully electric by 2040 besides adding 10 EVs to its lineup in the next five years. Under his leadership, the company is strengthening ties with other automakers such as Mazda, Subaru, Volkswagen, and others to develop EVs and autonomous driving technology.
