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TOKYO: Japanese automaker Honda Motor Co plans to set up a new lithium-ion battery plant for electric vehicles in the United States with Korean battery supplier LG Energy Solution Ltd, the Nikkei business daily reported on Monday.

The investment is expected to be on a scale of several hundred billion yen, the report added.

Both Honda and LG Energy Solution declined to comment when contacted by Reuters.

The companies will establish a joint venture to start producing lithium-ion batteries in Ohio, where Honda’s main factory is located, according to the report, adding that they are aiming to start construction in 2023 and mass-production in 2025.

Honda to cut output by up to 40% at Japan plants on supply disruptions

LG Energy Solution, which is mainly engaged in the development of lithium-ion battery materials and next-generation batteries, also works in the EV and energy storage system (ESS) battery industries through its Energy Solution segment.

The company, which supplies EV batteries to automakers including Tesla Inc, General Motors Co, and Volkswagen AG among others, has earlier signed EV battery joint ventures agreements with General Motors, Hyundai Motor Co and Stellantis.

Earlier this year, Honda laid out a target to roll out 30 EV models globally and produce about 2 million EVs a year by 2030.

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