(RTTNews) – Honda Motor Co., Ltd. (HMC), a Japanese vehicle maker, said on Friday that it has formed a joint venture with LG Energy Solution, a South Korean battery firm, to produce lithium-ion batteries for its electric vehicles.
According to the deal, both parties have committed to invest $3.5 billion to establish a new production site to produce the batteries.
However, the overall investment related to the JV is projected to reach $4.4 billion.
The construction of the battery plant will begin early this year, with a plan to complete the project by the end of 2024.
The mass production of lithium-ion battery cells is expected by the end of 2025, to supply them exclusively to Honda plants in North America to power battery-electric vehicles sold in North America.
The new plant will be located around 40 miles southwest of Columbus in Fayette County with an aim to have an annual production capacity of around 40GWh.