Honda and LG Announce Plans for a New $4.4 Billion Battery Factory in the U.S.

Honda and LG Announce , Plans for a New $4.4 Billion , Battery Factory in the US.

CNN reports that Honda has struck a deal with Korean battery producer LG Energy Solution to build a $4.4 billion United States factory to supply its electric vehicles.

CNN reports that Honda has struck a deal with Korean battery producer LG Energy Solution to build a $4.4 billion United States factory to supply its electric vehicles.

The companies have yet to announce where in the United States the factory will be built.

In a joint press release on August 29, Honda and LG Energy Solutions said they plan construction to begin early in 2023.

The factory is expected to begin mass production by the end of 2025.

Since 1982, Honda has produced cars at its factory in Marysville, Ohio.

According to the partners, a "timely supply of batteries" will best position the companies to succeed in the growing electric vehicle market in North America.

In 2024, Honda plans on launching its electric SUV, the Prologue.

According to Honda, the company plans to launch 30 electric vehicles by 2030 and to only sell electric vehicles in North America by 2040.

In the next 10 years, Honda plans to spend approximately $36 billion on electric vehicles and software.

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In May, Hyundai said it would build a battery plant in Georgia.

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Earlier this year, Mercedes-Benz opened a battery plant in Alabama.

LG and General Motors have projects in Ohio and Tennessee expected to cost approximately $2.3 billion each