Honda and LG Energy Solution are in talks to build a battery factory for electric vehicles in the United States, with a production capacity of 40 gigawatts per year. However, no decision has been made yet.
The points need to be clarified
The Korea Herald, citing sources familiar with the matter, said the construction date, location and ownership system would be clarified within the next six months.
The battery factory is worth almost 3 billion euros
The newspaper says that if the companies reach an agreement, the battery plant will cost around three billion euros. Reuters also reports this figure, but for its part the South Korean economic newspaper cites Maeil’s article.
LGES confirms the talks without mentioning Honda’s name
Honda USA declined to comment to Reuters. LGES released a press release that did not confirm or deny the information. “We are discussing various ways to work with automakers, including creating joint ventures, but nothing has been decided yet,” the battery maker said.
A rare alliance between South Korea and Japan
If this joint venture comes to fruition, it will be one of the rare partnerships established between the South Korean company and the Japanese company, and the relationship between the two countries is historically complex.
However, technically, battery cooperation makes sense: Honda relies on General Motors’ Ultium platform for electric cars coming to the United States. GM, in turn, is driving the Ultium Cells joint venture with LG to mass-produce battery cells for this electric car operating system.
According to the Korea Herald, Honda has decided not to cooperate with Japanese battery makers such as Panasonic due to lack of competitiveness.
Launched by Honda in September 2021 Its 100% electric vehicle sales target for North America. The Japanese manufacturer wants to sell 500,000 electric cars in the region by 2030. By 2040, the automotive team will only offer electric cars in North America. The first model, called the Prolog, will be launched in 2024 Based on GM, Other models should follow. It is expected to be based on Honda’s own e: Architecture electric car platform later.
Sources: koreaherald, Reuters
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