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The investment is expected to be on a scale of several hundred billion yen, the report added.
Both Honda and LG Energy Solution declined to comment when contacted by Reuters.
The companies will establish a joint venture to start producing lithium-ion batteries in Ohio, where Honda’s main factory is located, according to the report, adding that they are aiming to start construction in 2023 and mass-production in 2025.
LG Energy Solution, which is mainly engaged in the development of lithium-ion battery materials and next-generation batteries, also works in the EV and energy storage system (ESS) battery industries through its Energy Solution segment.
The company, which supplies EV batteries to automakers including Tesla (NASDAQ:TSLA) Inc, General Motors Co (NYSE:GM), and Volkswagen AG (OTC:VWAGY) among others, has earlier signed EV battery joint ventures agreements with General Motors, Hyundai Motor Co and Stellantis.
Earlier this year, Honda laid out a target to roll out 30 EV models globally and produce about 2 million EVs a year by 2030.
($1 = 138.8400 yen)
