EVs need to be built in the US to qualify for the tax credits.
Honda and LG Chem will build a $4.4 billion electric vehicle battery factory in the US, the latest move to shore up the country’s domestic production to comply with new tax credit rules.
Honda and LG Chem will form a joint venture to produce batteries in the US for the automaker’s upcoming lineup of EVs. The two companies aim to begin construction in early 2023 to enable the start of mass production of lithium-ion battery cells by the end of 2025. Honda and its subsidiary Acura have plans to release 30 hybrid, battery-electric, and fuel-cell vehicles by 2030.
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