Recently, Honda has been on the run! The company took quite some time in R&D before they finally settled with the electric vehicles.
To rev up the production and develop Honda’s flagship vehicles, the company is about to produce Li-Ion batteries. As the automotive industry shifts towards sustainability, we all know the significant role of Li-Ion batteries.
The industry needs more and more Li-Ion batteries not only to power up EVs but also to pave the way for clean and efficient energy. That’s what inspired Honda to get into the production of Li-Ion batteries.
If the news becomes shocking for you, let us inform you – the plan is not too recent. It was in August 2022, that Honda confirmed their joint production of Li-Ion batteries with LG Energy Solution.
Today, we will learn more about Honda’s venture into Li-Ion battery production, and how it’s about to affect the automotive industry.
Honda’s Joint Venture with LG Energy Solution
The roots were set back in late 2022. Both Honda and LG Energy Solution agreed to establish a joint venture (JV) together and build a battery plant.
The primary objective was set for the U.S. The company wanted to produce Lithium-Ion batteries for the upcoming Honda and Acura EV models, set for the North American market.
Ultimately, the Joint Venture was founded on January 13, 2023, with a groundbreaking ceremony on February 28, 2023. Ohio was the home of this battery plant – the announcement came early on October 11, 2022.
The plans were all in place, and production is to begin by the end of 2025.
What Happened in Ohio?
Ohio set as the home base for the battery plants with a groundbreaking announcement, the JV set some marks on the event. Some major highlights from the announcement events are,
- Many local and state officials were present in the Global Honda and LGES executives in this milestone event.
- New renderings provide the first glimpse at the new EV battery factory. It was expected to cost $4.4 billion in total, with a starting budget of 3.5 billion in hand.
- Officials were all set to start the construction and scale it up quickly. They wanted the plant to be finished by the end of 2024 to support the mass production of Li-Ion batteries by the end of 2025.
- Initially, the first batch of 2 million sq. ft of batteries (in size) was planned to be delivered to Honda Auto Plants on demand. The batteries were meant to be used to produce EVs for sale, exclusively in North America.
- The company set primary goals to approximately produce 40GWh of annual production capacity. The JV battery plant will be set in Fayette County, in Jeffersonville, around 40 miles southwest of Columbus.
Many renowned personalities like Toshihiro Mibe – president and CEO of Honda Motor Co., Ltd., Dong-Myung Kim – president and head of the Advanced Automotive Battery Division of LG Energy Solution, Ohio Governor – Mike DeWine, Lieutenant Governor – Jon Husted, other members of state government and local community heads joined the event.
The Leaders
In this very event, leaders of the newly established JV also delivered some promising speeches.
Robert H. Lee, CEO of the JV said,
“ It is an honor to represent two great corporations, Honda and LG Energy Solution, both with a long, proud history of success. LG Energy Solution is the leading battery manufacturer globally and is investing aggressively to meet the demand for electrification. We are excited to embark on this partnership with Honda, a leader in the global auto industry with a reputation for quality and reliability.”
He also added,
“If we harness these strengths, I have no doubt our joint venture will be the most successful battery plant in the world, and we look forward to being a part of this massive transformation toward sustainability.”
On the other hand, Rick Riggle – COO of JV was also highly optimistic about this new venture. He said,
“We have talked a lot about the partnership between Honda and LG Energy Solution, but the communities of Southern Ohio are a part of this venture, too, and we see it not so much as a joint venture, but a tri-venture between our companies and the community, We share similar values and perspectives regarding the relationship we want to have with our new workforce, and this spirit of teamwork will be key to our success.”
Mass Battery Production & Investment
As soon as Ohio was set as the base for the battery plant, an investment of $3.5 billion was made. Instantly, about 2,200 job opportunities were raised in Fayette County, Ohio.
Honda also confirmed that they are planning to invest $700 million more to re-tool already existing auto and powertrain plants in Ohio. They wanted to set the plants for the development of electric vehicles, which would use the JV facility’s batteries for instance.
The plan was to create a market on-demand before starting the battery production in mass. This kind of marketing policy is indeed a clever trick to survive and sustain in the competitive industry.
For example, consumers of the Li-Ion battery from the JV battery plant are already set on board. Honda is to start producing and selling Honda EVs in North America by 2026.
However, let’s not forget the carbon neutrality plan of Honda. The company is all set to reach zero carbon emission by 2050 and replace all ICE-based vehicles with battery electrics.
Honda claims that the production of Li-Ion batteries is just the beginning! This is one of the primary steps to make EVs and FCEVs and put 100% of its EVs in sales by 2040. Learn more here.
Last But Not the Least
Although Honda started it late in the EV industry, developments in recent years are praiseworthy and notable!
The company has set some values in the progress of electric vehicles and we are soon to find out the results! We hope, shortly, we will have Honda EVs within a reasonable budget and available at our nearest Honda dealership.
After all, electric vehicles are just a significant mark to set up our first footstep into an eco-friendly solution and healthy environment. Do you like our article? Let us know in the comment section.
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