Honda, GM, Toyota Ramping Up U.S. Battery Production

Plans for new plants that will produce batteries for electric vehicles are at the heart of a flurry of announcements by Honda, General Motors and Toyota, highlighting the vital role BEVs play in each company’s future product initiatives.

Toyota says it is preparing to invest an additional $2.5 billion to expand battery-production capacity at its newest North American factory, Toyota Battery Mfg. in Liberty, NC.

Toyota’s announcement brings its total investment in the Liberty plant to $3.8 billion and will add 350 jobs, bringing total employment to about 2,100. Scheduled to begin production in 2025, the plant will produce batteries for hybrid electric vehicles and BEVs.

Meanwhile, Ultium Cells, a joint venture between GM and Korea’s LG Energy Solution, says its new battery-cell plant in Warren, OH, has started operations.

During a visit by Ohio Gov. Mike DeWine, Ultium Cells highlighted its innovative cell manufacturing process driven by a growing team of more than 800 employees. The JV continues to focus on training as it ramps up production.

At full production, the Warren plant, which cost $2.3 billion to build and equip, will employ 1,300 people and utilize renewable sources of energy from wind farms in northeast Ohio.

Ultium Cells will provide 40 GWh of annual capacity to support GM’s North American BEV assembly capacity of more than 1 million units by mid-decade. It also will support GM plans to supply other automakers and other industries including rail, aerospace, heavy trucking and marine.

LG Energy Solution is establishing a separate JV with Honda to produce lithium-ion batteries in the U.S. to power Honda and Acura BEVs for the North American market.

Honda and LGES expect to invest $4.4 billion in a plant in the U.S., most likely near Honda’s manufacturing base in central Ohio. Construction is to begin in early 2023, with mass production of advanced lithium-ion battery cells targeted for the end of 2025.

The pouch-type batteries produced at the plant will go exclusively to Honda facilities in North America.

“Honda is working toward our target to realize carbon neutrality for all products and corporate activities the company is involved in by 2050,” says Honda President and CEO Toshihiro Mibe. “Aligned with our longstanding commitment to build products close to the customer, Honda is committed to the local procurement of EV batteries which is a critical component of EVs. This initiative in the U.S. with LGES, the leading global battery manufacturer, will be part of such a Honda approach.”

Honda EVs screenshot