Honda and LG to build EV battery plant of $4.4 billion in US

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South Korean battery giant LG and Japanese automaker Honda are investing $4.4 billion in U.S. as a joint venture.. produce batteries for Honda's electric vehicles in the North American market, the companies announced on Monday.

The location of the factory has yet to be determined, but construction is expected to begin in early 2023,

with mass production of advanced lithium-ion battery cells to begin in late 2025.

The joint venture is expected to be established later this year, and completion of the transaction is subject to regulatory approvals.

The plant will produce batteries exclusively for Honda vehicles assembled in North America, including the company's luxury brand Acura, according to a joint statement.

LG, a leading manufacturer of lithium-ion batteries for electric vehicles and drive systems, already manufactures them in joint ventures with..

US automakers General Motors, Ford Motor and South Korea's Hyundai Motor Group.

Demand for electric vehicles is expected to increase in the United States and many other countries due to climate change, pollution concerns,

and rising gasoline prices. All of the world's major automakers are expanding their range of EV products.

A new law enacted in U.S. includes a tax credit of up to $7,500 that could be used to defray the cost of purchasing an electric vehicle.

But to qualify for the full credit, the electric vehicle must have a battery built in North America with 40% of the metals mined or recycled on the continent.

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