Enlarge / A Honda worker assembles a battery pack. (credit: Honda)
North American lithium-ion battery production is set to soar over the next decade. The Biden administration and Congress have both put policies in place to incentivize domestic manufacturing over imports, and startups, battery companies, and automakers are responding. Honda and LG Energy Solutions are the most recent to make moves; on Monday morning, the companies announced that they are forming a $4.4 billion joint venture to build a US battery factory.
"Our joint venture with Honda, which has significant brand reputation, is yet another milestone in our mid- to long-term strategy of promoting electrification in the fast-growing North American market," said Youngsoo Kwon, CEO of LG Energy Solution. "Since our ultimate goal is to earn our valued customers' trust and respect, we aspire to position ourselves as a leading battery innovator, working with Honda in achieving its core initiatives for electrification, as well as providing sustainable energy solutions to discerning end consumers."
In May, the Department of Energy announced $3 billion in funding to boost domestic battery production. Much of that battery production will be destined for electric vehicles, particularly since President Joe Biden signed the Inflation Reduction Act into law this month. The law ties an EV's tax credit to where its battery pack was made—if an ever-increasing proportion of the pack is not domestic, there is no credit.
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