TOKYO: Japanese automaker Honda Motor plans to setup a new lithium-ion battery pack plant for electric powered vehicles in the United States along with Korean battery supplier LG Energy Option, the Nikkei company daily reported upon Monday (Aug 29).
Electric battery makers are looking to increase production in the US where a shift toward electric vehicles (EV) can increase as the nation implements stricter regulation and tightens taxes credit eligibility.
The investment is usually expected to be on the scale of many hundred billion yen, the report additional.
Both Ford and LG Power Solution declined in order to comment when contacted by Reuters.
The US government has been pressing policies designed to provide more battery plus EV manufacturing to the country.
Leader Joe Biden agreed upon an US$430 billion climate, health care and tax bill this 30 days that would render electrical vehicles assembled outside North America ineligible meant for tax credits.
California announced a plan a week ago requiring all new automobiles sold in the state by 2035 to be either electric or plug-in electric hybrids.
Honda and LG Energy Solution may establish a joint venture to begin producing lithium-ion electric batteries in Ohio, where Honda’s main manufacturing plant is located, according to a report, adding they are aiming to start construction within 2023 and mass-production in 2025.
LG Energy Option, which is mainly involved in the development of lithium-ion battery materials and next-generation batteries, also items EV batteries and signed joint-venture contracts with General Engines, Hyundai Motor and Stellantis.
In July, Panasonic Power, an unit associated with tech conglomerate Panasonic Holdings and a main Tesla supplier, mentioned it had chosen Kansas as the site for a new battery plant with investment decision of up to US$4 billion dollars.
Earlier this year, Ford laid out a target to roll out 30 EV models internationally and produce about 2 million EVs a year by 2030.