Joint plant worth $4.4 billion.
In order to meet Honda Motor Co.’s goal of completely replacing all fossil-fuel vehicles by the year 2040, the Japanese automaker will invest $4.4 billion in the construction of a new battery plant in the US.
The location of the US plant has not yet been determined.
Early 2023 will see the commencement of construction on the facility, which will have an annual capacity of about 40 gigawatt-hours. Late 2025 will see the start of battery manufacturing for Honda and Acura electric vehicles.
The Inflation Reduction Act, a new U.S. energy and tax policy measure, mandates that Asian manufacturers assemble electric vehicles in the United States and lessen their dependency on China for fossil fuels used in batteries in order to qualify for a maximum subsidy of $7,500.
South Korea will seek cooperation with Japan and European countries to soften tough rules for electric vehicles and battery makers.