So much for the unshakeable supplier relationships that supposedly characterise Japanese industry. Honda is collaborating with South Korea’s LG to build a $4.4bn battery plant in the US. The tie-up is the latest sign that Panasonic is losing its position as a key supplier to Japanese automakers.
The partners would start building the new lithium-ion electric car battery plant early next year. Mass production would begin by the end of 2025. Ohio, home to Honda’s main US factory, would reportedly be the location.
Panasonic might superficially seem the easier pick for Honda’s battery partner. The pair have been involved in research for years. The two formed a joint venture company in Indonesia four years ago. Their local ties are mirrored by those of LG Energy Solution. In South Korea, it supplies all the local automakers including Hyundai, Kia and Edison Motors.