The Japanese Honda Motor Co. will build a new lithium-ion battery factory in the United States, with the financial amount of the investment reaching 4.4 billion dollars.
The construction of the factory unit will be done in collaboration with the Korean battery production company LG Energy Solution Ltd, as the two companies announced yesterday.
Battery makers are looking for ways to increase production in the US, where a shift towards electric vehicle (EV) use will increase demand for batteries as Washington tightens regulations and makes tax breaks more selective.
According to the two companies, the location of the new manufacturing facility has not yet been decided, but two sources briefed on the matter confirmed reports that Honda is seriously considering Ohio, where the company’s main US production facility is located.
The two companies are targeting an annual production capacity of approximately 40 Gwh with the batteries exclusively available at Honda’s North American facilities to meet the energy needs of Honda and Acura EVs.
At the same time, a joint venture is expected to be formed before the construction of the factory unit, with the start of construction set for early 2023, while mass production is scheduled to begin in late 2025.
Ohio Gov. Mike DeWine said the local government is working with Honda and LG “to ensure they choose Ohio for this new electric battery manufacturing plant.” According to the sources who have received relevant information, the announcement of the location of the new factory will be made within the next few weeks.
The US government is promoting policies designed to attract more electric vehicle and battery manufacturing activities to the US.
President Joe Biden signed a $430 billion spending bill in August for climate action, health care, and tax incentives. This law excludes from tax exemptions the electric vehicles of companies produced outside of North America.
Ali Zaidi, deputy White House climate adviser, praised Honda and LG’s “big investment” in catalyzing climate and infrastructure legislation.
US Energy Secretary Jennifer Granholm said in a tweet that the administration is “bringing back domestic battery production so Americans have good-paying jobs and will power the electric vehicle revolution.”
California announced last week that all new vehicles sold in the state starting in 2035 must be either electric or hybrid.
SOURCE: AMPE
Source: Capital
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