Eminent Japanese automaker Honda and prominent South Korean battery maker LG have taken a major decision that is expected to boost green mobility. These companies have decided to join hands to manufacture electric vehicle (EV) batteries. This collaborative dream will cost $4.4 billion and assist Honda to produce electric vehicles in the North American markets.

They are looking for a plant site in the US but the place has not been finalized yet. As per sources, it is believed that construction for the site will begin in early 2023. If all goes well as per the plans then by the end of 2025 mass production of lithium-ion batteries will start.

A joint Venture will be set up soon and necessary approvals would be taken to close the deal as soon as possible as per the guidelines of the state.

The rising cost of fuel, high inflation, and adverse environmental impact of fossil fuels have forced automakers to look for environmentally-friendly mobility solutions. Major automakers are giving greater focus on green mobility now than ever before.

“Our joint venture with Honda, which has a significant brand reputation, is yet another milestone in our mid- to long-term strategy of promoting electrification in the fast-growing North American market,” said LG Energy Solution Chief Executive Youngsoo Kwon.

“Honda is working toward our target to realize carbon neutrality for all products and corporate activities the company is involved in by 2050,” said Honda Chief Executive Toshihiro Mibe.