Tech - News
Honda And LG Team Up To Fix Electric Cars' Biggest Issue In The US
Honda has been making major moves to shift its focus toward the electric vehicle market; in March 2022, it teamed up with Sony to reveal an alliance to manufacture electric vehicles by 2025, and Honda is also collaborating with GM to manufacture affordable EVs by 2027. Beyond that, Honda is set to introduce its first electric vehicle to the U.S market in 2024 — the Prologue.
Honda's EV-related announcements are part of its overall strategy to produce 100% zero-emission cars by 2040 and dominate the EV market, which includes solving a huge EV manufacturing issue. To that end, Honda announced it's teaming up with LG Energy Solution to invest $4.4 billion in a lithium-ion battery production plant in the U.S.
Since Honda EVs will be sourcing lithium batteries produced in the U.S., its electric cars, including the Prologue and Acura Precision, could be eligible for a tax credit of up to $7,500 under the Inflation Reduction Act. This will give Honda a competitive advantage since most EV manufacturers that produce their batteries overseas are not eligible for that tax rebate.
Honda is yet to disclose the location of this proposed plant with LG, but it might be in Ohio, as Honda already has an established manufacturing facility in Ohio, and an EV battery production plant close to it would be convenient. The construction of the Honda-LG battery production plant is scheduled to start in early 2023 and is expected to wrap up by 2025.