NAME: Honda and LG Energy Solution JV for $4.4 billion US EV battery factory
LAW FIRMS: Lee & Ko, Nishimura & Asahi
JURISDICTION: Japan, South Korea, US
PRACTICE AREAS: Corporate and M&A
INDUSTRY SECTORS: Energy, Industrials and manufacturing
The joint venture between Honda Motor and LG Energy Solution to build a $4.4 billion lithium-ion battery plant for electric vehicles (EVs) in the US is our deal of the month for September.
Honda Motor was represented by Nishimura & Asahi, while LG Energy Solution was advised by Lee & Ko.
Honda Motor and LG Energy Solution announced recently that they will team up and invest $4.4 billion to build a new EV battery production plant in the US. It is not clear yet where the factory will be built, but news reports signal that Ohio is the frontrunner as it is where Honda’s main US factory is located. The companies aim for plant construction to begin in early 2023 so that the mass production of lithium-ion batteries can start by the end of 2025. According to Reuters, battery makers are increasingly shifting production to the US where the proliferation of EVs is expected as the country tightens regulation and tax credit eligibility.
Nishimura & Asahi partners Ryutaro Nakayama, Yuki Oi, Satoshi Niki, and Kazumaro Kobayashi led the team for the Japanese automaker. Representing LG Energy Solution is an M&A team from Lee & Ko led by Ho Joon Moon, Ki Wook Kang and Mung Il Jang. These lawyers remain trusted and consistent counsel to the South Korea-based company, having represented LG Energy Solution on numerous corporate mandates. Since this deal will involve a stream of post-closing tasks, the Lee & Ko team expects to continue advising its client until the JV with Honda is operational.