LG Energy Solution plans to build US battery JV with Honda: report

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South Korean battery maker LG Energy Solution (LGES) plans to build a battery joint venture (JV) with Japan’s Honda Motor Co Ltd in the United States, South Korea’s Maeil Business Newspaper said on Friday, citing an unnamed industry source.

The potential battery JV between LGES and Honda could cost as much as 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 have details, such as the timeline of when the JV would be built and begin operations.

LGES, LG Chem Ltd’s battery subsidiary, commands more than 20% of the global EV battery market and supplies Tesla Inc, General Motors Co and Volkswagen AG among others.

“We are discussing various ways to cooperate with automakers, including establishing joint ventures, but nothing has been decided,” LGES said in a statement.

A Honda USA spokeswoman declined to comment on the story.

“This is not something that Honda has announced. We cannot comment on speculation,” said a spokesperson at Honda in Tokyo.

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

Honda Motor’s chief executive, Toshihiro Mibe, said last year the Japanese automaker was willing to form new alliances to make electrification profitable.

LGES, which has battery production sites in the United States, China, South Korea, Poland and Indonesia, plans to invest a total of 5.6 trillion won in North America by 2024 to secure production capacity of over 160 GWh by 2025 in the region, according to a company filing.

That includes two new U.S. plants jointly built with GM in Ohio and Tennessee as well as a battery joint venture with Stellantis NV.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.