LG, Honda possible joint battery deal: report

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LG, Honda possible joint battery deal: report

LG Energy Solution's logo is on a smartphone in front of the stock graph shown in this illustration taken on December 4, 2021. REUTERS Dado Ruvic Illustration

The Maeil Business Newspaper said on Friday that T was in the United States, citing an unnamed industry source.

The potential battery JV between LGES and Honda could cost up to 4 trillion won $3.4 billion and have an annual production capacity of up to 40 gigawatt hours GWh of batteries, enough to power 600,000 electric vehicles EVs the newspaper reported. The report did not provide any details, such as the timelines when the JV would be built and begin operations.

LG Chem Ltd's 051910 LGES, LG Chem Ltd's 051910. KS battery subsidiary is responsible for more than 20% of the global EV battery market and supplies Tesla Inc TSLA.O General Motors Co GM.N and Volkswagen AG VOWG p. DE among others.

LGES stated in a statement that they are discussing various ways to cooperate with automakers, including establishing joint ventures.

A Honda USA spokeswoman wouldn't say anything about the story.

This is not something Honda has announced. A Honda spokesman said we couldn't comment on speculation.

In 2024 Honda and its alliance partner GM plan to introduce two jointly developed large-sized EV models in North America, using GM's Ultium batteries. GM will make Ultium batteries under a JV with LG.

Honda Motor's chief executive, Toshihiro Mibe, said last year that the Japanese automaker was willing to form new alliances to make electrification profitable. According to a company filing, LGES plans to invest 5.6 trillion won in North America by 2024 to reach the capacity of over 160 GWh by the year 2025 in the region, which includes battery production sites in the United States, China, South Korea, Poland and Indonesia.

It includes two new U.S. plants built with GM in Ohio and Tennessee and a battery joint venture with Stellantis NV STLA.MI.