Like many other OEMs, Honda is partnering with LG Energy Solutions for future EV traction battery’s to be made in the U.S. Wayne Gerdes – CleanMPG – Oct. 11, 2022 The IRA act with its $7,500 Fed Tax Credit limited to BEVs made in North America and the battery’s composition mostly made in the U.S. is really moving the worlds OEMs to build their vehicles and components here. And is it not about time? Today, Honda and LG Energy Solution announced that their new joint venture (JV) battery plant will be located in Fayette County, Ohio, about 40 miles southwest of Columbus, where the two companies will commit to investing $3.5 billion and creating 2,200 jobs, pending final government approvals. The companies’ overall investment related to the JV is projected to reach $4.4 billion. The joint venture between Honda and LGES will be formally established in 2022. The two companies plan to begin construction in early 2023, to complete the new production facility by the end of 2024. The plant aims to have approximately 40 GWh of annual production capacity as it starts mass production of pouch-type Li-Ion batteries by the end of 2025. Honda announced plans to begin production and sales of Honda EVs in North America in 2026, based on its new Honda e:Architecture. The EV batteries produced at the new JV plant will be provided to Honda auto plants to produce EVs to be sold in North America. It is better late than never but damn Honda, what the hell were you sitting on your @$$ for so long for? This latest JV announcement with Honda reflects the recently announced LG Energy Solution's mid- to long-term strategy to focus on North America, the fastest growing EV market. LGES plans to further expand its production capacity in the region, as well as reinforce its local supply chain for key critical minerals. As part of its goal to achieve carbon neutrality for all products and corporate activities by 2050, Honda announced a vision to make battery-electric and fuel cell electric vehicles represent 100% of its vehicle sales by 2040. In addition, Honda announced another major investment in Ohio, including $700 million to re-tool several of its existing auto and powertrain plants for production of EVs. The announcement will transform Honda's Marysville Auto Plant (MAP), East Liberty Auto Plant (ELP) and Anna Engine Plant (AEP) for the electrified future, including the creation of over 300 new jobs. Honda plans to begin production and sales of Honda EVs in North America in 2026, based on its new Honda e:Architecture. The $700 million re-tooling will enable AEP associates to produce the battery case, to be combined with the battery modules from the JV plant on a sub-assembly line at MAP, with the complete battery unit then installed in EVs built by associates at both MAP and ELP. These Honda facilities, along with the new EV battery plant, will serve as a new EV hub in Ohio, and play a key role in developing the company's knowledge and expertise in EV production that will be shared across Honda's North American auto production network in the coming years. Honda's EV hub will leverage the company's longstanding production, product development, and purchasing operations located in Central Ohio. Honda's goal to achieve carbon neutrality for all products and corporate activities by 2050 is a large part made up by its vision to make battery-electric and fuel cell electric vehicles representing 100% of its vehicle sales by 2040 in North America. 2022 Honda Accord Hybrid Honda's best offering is but one of a current and future lineup of electrified products from the iconic Japanese Automaker. Honda produced and sold a record of more than 100,000 electrified vehicles in the U.S. last year, including the Accord Hybrid, CR-V Hybrid and Insight hybrid sedan. Honda's new investment in its Ohio plants will support production of electric vehicles and EV components. Could sales have anything to do with this? September 2022 U.S. Auto Sales Totals Toyota sold 179,050 vehicles in September, UP 17.1% over the 152,916 sold in September of 2021 GM does not report September sales. For the Q3, they sold 555,580 vehicles, UP 24.3% over Q3 of 2021. Ford sold 142,644 vehicles in September, DOWN 8.9% below the 156,614 sold in September of 2021 Stellantis did not report September sales. For the Q3, they sold 385,665 vehicles, DOWN 6.1% below Q3 of 2021 Honda sold 79,354 vehicles in September, DOWN 35.8% below the 95,716 vehicles sold in September of 2021 Hyundai sold 59,465 vehicles in September, UP 10.5% over the 53,800 vehicles sold in September of 2021 Kia sold 56,270 vehicles in September, UP 6.3% over the 52,906 sold in September of 2021 Nissan does not report September sales. For the Q3, they sold just 154,086 vehicles, DOWN 22.6% below Q3 of 2021 Subaru sold 45,658 vehicles in September, UP 8.6% over the 2,054 sold in September of 2021 I would be remiss if I did not include Tesla's Q3 global sales in which the company delivered > 343,000 vehicles, UP 42.1% over the 241,300 delivered Q3 of 2021. All I can say is it is about time and welcome to the future.
