Honda, LG to locate $4.4 billion battery plant in Ohio By Reuters

By David Shepardson

WASHINGTON (Reuters) – Honda Motor and LG Vitality Answer mentioned on Tuesday they may construct a brand new three way partnership $4.4 billion battery plant in Ohio.

The 2 corporations had introduced the plan in August however had not settled on a U.S. location. They mentioned they’re initially committing to investing $3.5 billion and creating 2,200 jobs however mentioned the general funding is projected to achieve $4.4 billion.

Honda will individually make investments $700 million to re-tool a number of present crops for manufacturing of electrical autos.

The Japanese automaker will retool three Ohio engine crops — together with its largest engine crops on the earth and add 300 new jobs — because it strikes to extra electrical car manufacturing.

Honda plans to start manufacturing and gross sales of Honda EVs in North America in 2026, primarily based on its new Honda e:Structure.

The three way partnership is pending regulatory approvals.

The 2 corporations plan to start development in early 2023 and intention to finish the brand new facility about 40 miles southwest of Columbus by the top of 2024.

The plant goals to have roughly 40GWh of annual capability because it begins mass manufacturing of lithium-ion batteries by the top of 2025.

EV batteries produced on the new JV plant can be supplied to Honda auto crops to supply EVs to be bought in North America. Honda goals to make EVs and gas cell characterize 100% of its car gross sales by 2040.

In April, Honda and Normal Motors (NYSE:) mentioned they might develop a sequence of lower-priced electrical autos primarily based on a brand new joint platform, producing doubtlessly hundreds of thousands of vehicles from 2027 in a bid to beat Tesla (NASDAQ:) in gross sales.

That announcement expanded on plans for GM to start constructing two electrical SUVs for Honda beginning in 2024 – the Honda Prologue and an Acura mannequin.