Honda, LG team up to bring joint venture EV battery plant to midwest

Japanese automaker Honda and South Korean tech company LG announced $3.5 billion in joint funding for an electric vehicle battery plant in Ohio. The facility will create more than 2,200 jobs once both companies receive government approvals for the facility - and upwards of $4.4 billion in total investment from both companies.

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If all goes according to plan, construction will begin sometime in early 2023, with the facility finished by the end of 2024. Earlier in the year, Honda said it was interested in creating a joint venture for battery production somewhere in North America, with Ohio - because of the company's resources already in place - seemed like a strong candidate, though partner companies remained unknown.

As said by Dong-Myung Kim, Executive Vice President of Advanced Automotive Battery Division at LG Energy Solution:

"In another major step toward electrification, LG Energy Solution's innovative battery technologies will not only power Honda's brand-new EV models but support Ohio's green economy. We extend our gratitude to everyone who played a role in making this happen. With our commitment to building the world-best quality products, together with Honda, we look forward to not only creating thousands of quality jobs here in Ohio, but growing together with the community."

In addition to the joint facility, Honda will invest $700 million - and create 300 jobs - at several of its current Ohio factories. Honda currently has two assembly plants and an engine plant already operating in the midwestern state.

As many US states look to ban the future sale of new gas-powered vehicles, the need for new factories able to cater to EV-based infrastructure is required. There also is a unique opportunity for automakers and tech companies to work together, as vehicles become even more tech-centric in the years to come.

Honda has plans to become fully carbon neutral by 2050, and will eliminate internal combustion engine sales by 2040, with fully electric car models replacing ICE models. Meanwhile, LG Energy Solution already has working agreements with General Motors, Stellantis, and Hyundai Motor.