As the world continues to transition towards cleaner energy, one of the key areas of focus is the development and manufacturing of high-capacity batteries that can power electric vehicles (EVs) for extended ranges. Battery technology has come a long way in recent years, and there have been numerous breakthroughs that have led to more efficient, reliable, and cost-effective batteries. However, the challenge remains to produce these batteries at scale and at a price point that is accessible to the average consumer.
In this article, we look at two recent pieces of news related to battery manufacturing, including Honda’s plans to build a new battery plant in Ohio and Stellantis' investment in three Indiana plants to support North American electrification goals.
LG and Honda Partner Up
At the end of February, LG and Honda made waves in the industry with an announcement to co-develop batteries for electric vehicles with a new, joint battery plant in Ohio.
Overall, the two companies have committed $3.5B in investment into the joint facility, with the ultimate goal of spending $4.4B on the project. The new facility, which will be open in 2024, will aim to produce ~40GWh of capacity annually, with a focus on lithium-ion batteries for electric vehicles.
Behind the scenes, both Honda and LG are motivated by a need to develop advanced battery technologies that can meet the needs of the fast-growing electric vehicle market, which is expected to grow significantly in the coming years.
Honda, which has set a target to electrify 100% of its sales in North America by 2040, will benefit from LG's expertise in battery technology. Together, the two companies will develop new batteries that can offer longer driving ranges, faster charging times, and increased safety.
LG, on the other hand, is looking to expand its presence in the global EV market, which is expected to grow rapidly in the next decade. The company, which is already a leading battery supplier for electric cars, will benefit from this collaboration by gaining access to Honda's expertise in vehicle design and manufacturing. By working together, LG and Honda can combine their strengths to create advanced battery technologies that can meet the needs of the global market.
Stellantis Invests $155 Million in 3 Indiana Plants to Support North American Electrification Goals
At the same time, Stellantis, the parent company of Chrysler, Dodge, Jeep, Ram, Fiat, and other brands, recently announced a $155 million investment in three new Kokomo, Indiana plants.
The new plants will be used to produce new electric drive modules (EDM) that will help power future electric vehicles assembled in North America. The EDM is an all-in-one solution for electric vehicle powertrains, combining the electric motor, power electronics, and transmission into a single module. This unique approach hopes to offer improved performance and range at a competitive cost. Specifically, Stellantis believes that the optimized efficiency of the new EDM will help each platform achieve a driving range of up to 500 miles in future EVs.
According to Stellantis, the Kokomo-built EDMs will be integrated into vehicles designed on the STLA Large and STLA Frame platforms. The investment is part of Stellantis' goal to reach 50% battery-electric sales in the U.S. by 2030. Production is expected to start at the new facilities in the third quarter of 2024.
Pushing the Industry Forward
As the demand for electric vehicles continues to rise, it is critical that the battery manufacturing industry continues to evolve and innovate. The collaborations and investments we have seen in recent months show that the industry is on the right track and is committed to meeting the needs of the fast-growing electric vehicle market. With the continued focus on developing advanced battery technologies, the future of the electric vehicle industry looks bright, and we can expect to see even more exciting developments in the years to come.