Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Honda Motor Co. and Korea’s LG Energy Solution Ltd. plan to spend $4.4 billion to build electric-vehicle batteries at a new joint venture in Ohio, part of project by the automaker to start EV production at its plants in the state.
The two companies will initially invest $3.5 billion and create 2,200 jobs at the battery facility in southwestern Ohio, construction of which will begin next year and from which mass manufacturing will get underway by late 2025, they said Tuesday in a statement.
Honda and LG had previously announced the investment plans in August, but not provided a location. Bloomberg reported in June that Ohio was a front-runner.
The Japanese company also said it will start production of US-made battery-powered cars on its own EV platform from 2026 at three existing manufacturing plants in the state. It plans to spend $700 million retooling an engine factory and its East Liberty and Marysville, Ohio, vehicle assembly plants, creating some 300 new jobs, it said.
“This is a very challenging time for our entire industry,” Bob Nelson, executive vice president of American Honda, said at an event in Columbus. “This requires a bold vision for the future.”
The battery joint venture aims to have approximately 40 gigawatt-hours in annual production capacity of pouch-type lithium-ion batteries, the companies said.
(By David Welch and Mark Niquette)
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