LG Energy Solution-Honda Confirm Site for US Battery Plant... Biden Says "IRA Leads Manufacturing Boom"

[Image source=AP Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] The joint venture between LG Energy Solution and Japan's automaker Honda has decided on a site in central Ohio for the battery factory to be built in the United States. U.S. President Joe Biden repeatedly emphasized the investment attraction achievement as "another victory for America." He also attributed this to the Chips and Science Act (CSA) and the Inflation Reduction Act (IRA), saying they are driving this investment and manufacturing boom.

According to the AP News and others on the 11th (local time), Honda announced that it will build a factory in Fayette County, 64 km southwest of Columbus, the capital of Ohio. This is a follow-up move after LG Energy Solution and Honda announced a total investment of $4.4 billion (about 6.3 trillion won) to build a 40GWh battery production facility in the U.S.

The factory will begin construction in the first half of next year and start mass production of pouch battery cells and modules from the end of 2025. The produced batteries will be supplied to vehicles assembled in North America, including Honda and Honda's premium brand Acura electric vehicle models. The local job creation scale is estimated to be 2,200.

President Biden welcomed the announcement in a statement, saying, "LG and Honda's commitment of more than $5 billion for electric vehicle battery manufacturing and plant facility reorganization in Ohio is another victory for America and Ohio."

He mentioned, "As I said at the Intel Ohio plant groundbreaking ceremony last month, now is the time to bury the label 'Rust Belt'." He added, "Just as the Chips and Science Act is accelerating record investments nationwide, the Inflation Reduction Act is leading a manufacturing boom for electric vehicles." The Inflation Reduction Act includes provisions to provide subsidies only for North American-made electric vehicles.

President Biden also emphasized that day, "America is leading the world again, and we are rebuilding our supply chains, infrastructure, and manufacturing here at home."

Meanwhile, LG Energy Solution, separately from Honda, has decided to build joint venture plants with General Motors (GM) in Ohio Joint Plant 1 (40GWh), Tennessee Joint Plant 2 (45GWh), and Michigan Joint Plant 3 (50GWh).

This content was produced with the assistance of AI translation services.