Expansions: Honda, LG Energy to build US$4.4 bn EV battery plant in US; Kraton to expand Taiwanese HSBC facility

Auto company Honda Motor Co. and LG Energy Solution will invest US$4.4 billion through a joint venture to establish a new lithium-ion battery factory in the US to power Honda and Acura electric vehicle models.

The plant, which will aim to have a production capacity of approximately 40 gigawatt hours/year, is expected to begin construction in early 2023 with the goal of mass-producing advanced lithium-ion battery cells by the end of 2025. The pouch-type batteries produced at the new jv plant will be supplied exclusively to Honda facilities in North America.

Though the official location for the plant has not been finalised, the companies are considering Ohio, according to Nikkei.

The joint venture, which is scheduled to be established in 2022, is subject to customary closing conditions, including regulatory approvals.

Japan-based Honda is planning to roll out 30 electric vehicle models globally and produce 2 million/year EVs by 2030. The company has also set a goal for carbon neutrality in all of its products and corporate activities by 2050.

The move comes amid a growing push by the US government to expand its EV and battery manufacturing.

By 2035, California plans to require all new vehicles sold in the state to be either fully electric or plug-in electric hybrids.

In addition to Honda, LG Energy has signed joint-venture agreements with General Motors, Hyundai and Stellantis.

Meanwhile in other news, US styrenic block copolymers maker Kraton Corporation has announced an expansion project for its HSBC joint venture manufacturing facility in Mailiao, Taiwan.

Kraton Corporation and Formosa Petrochemical Corporation have approved an expansion project for their HSBC joint venture plant in Mailiao, Taiwan. This project will increase the capacity of the current facility by 30%.

With this expansion project, Kraton says it will be able to offer its full range of SEBS and SEPS products, both in crumbs and pellet form, using the latest technology to customers in Asia from a regional production base.

“This exciting capacity expansion further demonstrates Kraton’s commitment to maintaining our leading position in the global styrenic block copolymers market. Broadening our Asia-manufactured HSBC portfolio helps support the growing customer base,” said Dr. Holger Jung, CEO of Kraton Polymers.

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