LG Energy Solution (LGES) and Honda Motor Co. have announced an agreement to establish a joint venture (JV) company to produce lithium-ion batteries in the US to power Honda and Acura EV models for the North American market.

LGES and Honda will invest a total of $4.4 billion and establish a new JV plant, with a location set to be determined. The plant aims to have an annual production capacity of approximately 40GWh.

Construction is expected to begin in early 2023 to enable mass production of advanced lithium-ion battery cells by the end of 2025.

“Honda is working toward our target to realize carbon neutrality for all products and corporate activities the company is involved in by 2050,” said Toshihiro Mibe, President, CEO and Representative Director of Honda. 

The JV is subject to customary closing conditions, including regulatory approvals.

For more information, visit honda.com.