Supply Chain Matters highlights a published report indicating that Honda Motor and LG Energy plan to jointly invest in a U.S. based battery production facility.
In our prior published Supply Chain Matters commentary, we highlighted a published report indicating that Panasonic Holdings, a prime battery supplier to EV automaker Tesla, was in discussion to build a third U.S. based battery production facility.
Today, The Wall Street Journal reported (Paid subscription required) that global auto maker Honda Motor, in partnership with supplier LG Energy Solution, have initiated plans to build a U.S. battery production facility. The Journal report indicates that the $4.4 billion facility is expected to be located in the state of Ohio where Honda operates an auto final assembly complex in Marysville, Ohio, but that the companies have not as yet disclosed a specific location. Construction is expected to begin in 2023 with volume production expected by the end of 2025.
Honda itself previously announced plans to produce 30 vehicle models by 2030 and is partnering with U.S. based automaker General Motors and Sony in joint development of these models.
The report reinforces that with battery supply network raw material and component costs rising significantly because of overall industry demand, auto makers are opting for partnerships with specific suppliers. LG Energy reportedly has battery joint development and supply agreements with automakers General Motors, Hyundai and Stellantis.
All of these collective announcements are added evidence of the coming together of high tech electronics, semiconductor and automotive global supply networks.
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