Sunday, July 14, 2024
NewsHonda Partners with LG to Build Electric Vehicle Batteries in the US

Honda Partners with LG to Build Electric Vehicle Batteries in the US

Honda announced a new partnership with LG Energy in order to build EV batteries in the US.

  • This could make electric Honda vehicles eligible for US tax credits

  • Honda’s first electric models will use General Motors’ Ultium technology

  • The automaker also has a partnership with Sony to build EVs

Honda and LG Energy have announced a partnership that will see both companies invest in a new factory to produce EV batteries in the United States.

This factory, which will begin to be built in 2023, will require a $4.4 billion investment and it should come online in 2025 with a production capacity of 40 Gigawatt-hours per year.

These batteries are likely to be used in the Honda and Acura models that will use the e: Architecture platform designed in-house by Honda, which will arrive in 2026.

Until then, Honda and Acura will use the Ultium platform from General Motors for the Prologue and ZDX, the brands’ first EVs to be sold in North America.

The partnership between the two automakers won’t stop there since the Prologue and ZDX are rumoured to be built in General Motors factories. If this is true, it could make them eligible for the new US tax credits for EVs.

In addition, GM and Honda are jointly developing a new platform aimed at the global market which should reach production in 2027.

GM is not the only automaker to work with Honda on a series of electric vehicles since the automaker announced another partnership with Sony in order to develop new models sold by both companies, perhaps as soon as 2025.

This is in addition to the vehicles equipped with solid-state batteries, a technology many automakers are currently working on, including Honda.

Once this technology arrives on the market, it is possible that the new factory planned by Honda and LG will be converted to produce this new type of battery.

All of these partnerships and joint ventures should allow Honda to reach its goal of offering thirty different electric vehicles around the world by 2030 with total production figures of more than 2 million per year.

 

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