A $4.4 billion electric vehicle battery facility being built in the US by Honda and LG Chem is the newest step taken to support local production and meet new tax credit regulations.
To develop batteries in the US for the next range of EVs from the automaker, Honda and LG Chem will establish a joint venture. To start mass producing lithium-ion battery cells by the end of 2025, the two businesses plan to start building in early 2023. 30 hybrid, battery-electric, and fuel-cell vehicles are scheduled to be released by Honda and its affiliate Acura by 2030.
AROUND 40GWH OF PRODUCTION CAPACITY ANNUALLY
According to The Wall Street Journal, the factory, which intends to have a manufacturing capacity of about 40GWh per year, will probably be situated in Ohio. A future battery plant worth $2.3 billion is also being planned in the state by LG Chem and General Motors.
For automakers who wish to be eligible for the $7,500 per vehicle tax credit, which mandates that EVs be constructed in the US, localizing battery production in the US is crucial. Foreign automakers are worried that the proposed tax incentives may unfairly target businesses without US manufacturing facilities.
A large number of new EV facilities are anticipated to open in the upcoming years, including the factory. GlobalData, a data and analytics business, predicts that battery output will increase from 95.3 gigawatt hours (GWh) in 2020 to 410.5 GWh in 2024.
