Honda and LG Energy are eyeing Ohio for new electric-car battery plant: sources

HONDA Motor and LG Energy Solution are eyeing Ohio as the frontrunner location for a new North American battery plant, according to people with knowledge of the matter.

The Midwestern state is considered a strong candidate because Honda already has automaking plants there, making it easier for LG Energy to transport the batteries, one of the people said. A final decision has yet to be made and the ultimate location could still change, according to the people, who declined to be identified because the discussions are private.

A representative for LG Energy Solution said the company was unable to comment on speculation. A spokesperson for Honda declined to comment.

Honda plans to spend 5 trillion yen (S$51.2 billion) on its push into electric vehicles (EV) over the next decade as part of a drive to phase out fossil-fuel vehicles completely by 2040. The Tokyo-headquartered company known for the Civic and its motorcycle business will launch 30 EV models by 2030 with production volume of more than 2 million vehicles a year.

While Honda and General Motors have teamed up to develop affordable EVs powered by GM's Ultium battery, the Japanese automaker in April said it's exploring the possibility of creating a joint venture with another company for battery production.

In January, South Korea's Maeil Business Newspaper reported that Honda and LG Energy were in discussions to build a 40GWh plant, capable of producing batteries for 600,000 electric cars annually, that may cost about 4 trillion won (S$4.4 billion).

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LG Energy, the world's second-largest EV battery maker behind China's Contemporary Amperex Technology, is increasing capacity through partnerships with carmakers. Within the next 3 to 4 years, Seoul-based LG Energy plans to build 5 battery plants in North America, including 3 in the US with GM, one with Stellantis in Canada and a standalone factory. It also aims to run a 110GWh plant in China and a 100GWh facility in Poland. BLOOMBERG