According to unofficial information, LG Energy Solutions (LGES) wants to build a plant in the United States to produce batteries for electric vehicles together with the Honda Motor Company, the eighth largest car manufacturer in the world. A Japanese company’s decision to choose a Korean battery manufacturer over “domestic” partners has no precedent yet.
According to sources in the battery industry, neither the timing of the construction of the company, nor the company’s share of new business, nor the site on which the plant will be built are known for certain. However, it is reported that the construction will be carried out in the United States, we are talking about a plant that can produce batteries with a total capacity of up to 40 GWh per year. A facility of this scale is capable of producing 600,000 high-performance batteries annually, worth over $3 billion.
The company is moving forward with partnerships with GM, Hyundai Motors and Stellantis, and will soon announce plans for joint ventures with other electric vehicle manufacturers, according to an LGES spokesman.
Last year, Honda became the first Japanese automaker to announce plans to go all-electric by 2040. Apparently, Honda chose LG as a partner because Japanese battery manufacturers are still having some difficulties with the release, according to The Korea Times.
Honda is already working indirectly with LGES after the Japanese company decided to build electric vehicles in the US on General Motors’ Ultium platform, for which LGES supplies the battery. Industry sources believe that Honda’s decision to work together is due in no small part to the successful experience of such an indirect partnership.
According to LGES itself, the company is discussing various options for cooperation with global automakers, but the South Korean group has so far refused to confirm any information.