Honda and LG Energy Solution said they chose the US because local production and “timely supply of batteries” would better position them to succeed in the growing North American electric vehicle market. Honda does not currently offer an electric vehicle in the U.S., but plans to launch an SUV, the Prologue, in 2024. Honda expects to launch 30 electric vehicle models worldwide by 2030 and sell all-electric vehicles in North America by 2040 The automaker’s planned plant could help it take advantage of new tax credits for electric vehicles, which encourage automakers to make batteries in North America. Honda said earlier this year that it planned to spend about $36 billion on electric vehicles and software over the next 10 years. It’s not the only automaker to announce plans for battery production in North America over the past year or so. Hyundai said in May it is building a battery plant in Georgia. Ford said last year it would invest $11.4 billion with rival LG Energy Solution’s SK Innovations to build two electric vehicle manufacturing centers. Mercedes-Benz opened a battery plant in Alabama earlier this year. Stellantis, which is made up of Fiat Chrysler and French carmaker PSA, announced last year with LG Energy Solution that it would build a battery factory producing 40 gigawatt hours, the same capacity envisioned by Honda. LG is also a longtime partner of General Motors, with which it has projects under construction in Ohio and Tennessee that are expected to cost $2.3 billion each. LG also supplied the battery for the Chevrolet Bolt, which led to a costly recall in which LG paid GM about $1.9 billion Rob McLean, Chris Isidore and Peter Valdes-Dapena contributed to this report.
