Construction of a new US$4.4 billion lithium-ion battery plant in Ohio is set to begin soon thanks to a collaboration between Honda and LG Energy Solution. By the end of 2025, mass manufacturing of sophisticated lithium-ion battery cells will start at these facilities.
The new facility will seek to have an annual output capacity of about 40 gigawatt hours. Honda announced earlier this year that it will debut 30 electric vehicles worldwide. They also plan to generate around 2 million EVs annually by 2030.
Disclosure of the location of the battery plant in Ohio
The multibillion-dollar plant’s location was not disclosed by Honda or LG Energy Solution. However, automakers have often announced battery production in close proximity to their assembly lines.
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Currently, Ohio, Alabama, and Indiana are home to big Honda manufacturing operations. According to CEO Toshihiro Mibe, “This aligns with our longtime commitment to developing goods near to the consumer. Honda is dedicated to the local sourcing of EV batteries, which is a crucial component of EVs.”
The new factory is “another milestone” for the South Korean business, which already includes joint ventures with GM, Hyundai, and Jeep-maker Stellaris, according to Youngsoo Kwon, CEO of LG Energy Solution.
Development of similar projects in the region
The United States-Mexico-Canada Agreement (formerly the North American Free Trade Agreement) and, more recently, the Inflation Reduction Act’s tighter sourcing requirements are followed by many of the automakers’ investments in battery plants. For automobiles to avoid tariffs or be eligible for financial incentives, there are now stricter standards for domestically supplied materials and parts.
A large number of new EV facilities are anticipated to open in the upcoming years, including the factory. GlobalData predicts that battery output will increase from 95.3-gigawatt hours (GWh) in 2020 to 410.5 GWh in 2024.
