Honda as well as LG Energy Solution jointly announced today that they have signed an agreement to create an Joint Venture (JV) company in 2022, to manufacture lithium-ion electric batteries within the US.
The two companies plan to invest $4.4 billion into the joint venture’s battery gigafactory that will have a capacity of 40 GWh pouch-type cells. This is equivalent to 400 battery packs, each with 100 kWh per.
The JV batteries will be exclusively used in the coming Honda as well as Acura electric vehicle models that will be sold in market in the North American market.
The location of the gigafactory’s new location is not yet finalized however, we have that the construction dates are set to begin (early 2023) and the mass production (by 2025’s end).
This implies that the speculations from the beginning of January 2022 were near to the truth at the very least, about 40 GWh per year.
As per Bloomberg, Honda revealed in an application that it will be holding a 49% share within the joint venture by investing $1.7 billion. LG Energy Solution will have 51% of the stake.
It is important to note that the first Honda/Acura models, scheduled to release in 2024, will run on General Motors’ Ultium platform. The initial sales goal is 70k units.
The timetable (end in 2025) suggests that the battery joint venture will be supplying battery packs for Honda/Acura next-generation EVs built on the company’s own platform known as “e:Architecture,” scheduled for the second half of 2020s.
In spring, Honda revealed that the strategy in North America is to produce around 800,000 electric vehicles annually in 2030. In the world, this amount could be around 2 million, with a total of thirty BEV vehicles (on an average, that is about 67,000 for each model).