Honda and LG have announced a $3.5 billion battery production joint venture, which will be built in Ohio over the coming two years.
As Honda’s automotive sales have shrunk dramatically over the past year, the company has begun to look at electric vehicles with renewed interest. And to produce its upcoming lineup of electric vehicles, Honda has partnered with LG to produce battery cells at a new facility in Jeffersonville, Ohio.
According to the press release from the two companies, they have pledged a combined total of $3.5 billion for the construction of the battery plant. Still, the overall cost before production can begin is expected to reach $4.4 billion. The plant will have a production capacity of 40GWh, and Honda plans to finish construction in mid-2024, with full production slated for 2025. The plant was first announced last year, but the company’s joint venture has now been finalized along with the construction location.
While Honda has yet to sell an electric vehicle in North America, that is expected to change in the coming years, as the Japanese auto giant has partnered with GM to introduce an electric SUV. Simultaneously, Honda’s motorcycle division has pledged to bring 2-3 electric vehicles to North America over the next few years.
“The formal establishment of this joint venture between LG Energy Solution and Honda to produce EV batteries in Ohio is another major step toward our electrified future,” said Rick Riggle, COO of the new joint venture company, L-H Battery Company. “We are excited to move forward with such a strong partner in LG Energy Solution, and together, we look forward to establishing a strong relationship with the community in Fayette County, Ohio.”
As for LG, this new Ohio-based plant is one of numerous that the battery manufacturer has begun constructing in the United States. Much like many other South Korean battery suppliers, LG rushed to the U.S. following the introduction of the Inflation Reduction Act and has created joint ventures and production partnerships with countless automakers. They are notably building four massive battery plants with General Motors and one sizable plant with Stellantis.
Many consider Honda behind the ball in terms of the electrification of its lineup. Still, with this sizable deal with LG, the Japanese automaker is lined up for continued electrification in the future. And hopefully, this will mean the storied brand will not only exist in the future but continue to provide customers with affordable mobility offerings.
What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!
Elon Musk
Elon Musk: Tesla Model Y is world’s best-selling car for 3rd year in a row
The Model Y has now established an impressive streak that would otherwise have been impossible before Tesla.
Elon Musk has announced that the Tesla Model Y has become the world’s best-selling car by volume for the third consecutive year, capping 2025 with another dominant performance.
The Model Y has now established an impressive streak that would otherwise have been impossible before Tesla.
Three years in a row
Musk posted on X: “Tesla Model Y is now officially the world’s best-selling car for the third year in a row!” The CEO’s comment echoed an update that Tesla included in its 2025 recap, which highlighted, among other things, the Model Y’s incredible streak.
The Model Y has held the title since 2023, outperforming traditional leaders like the Toyota RAV4 and Corolla thanks to its bang-for-the-buck nature and its stellar combination of practicality, performance, and tech. The Model Y is also lauded as one of the safest vehicles on the road, making it an ideal choice for families in key markets such as China.
An impressive 2025
The Model Y’s sales feat in 2025 is especially impressive considering the introduction of the vehicle’s new variant. Tesla’s changeover to the new Model Y across its global factories resulted in sales being paused for some time in the first quarter. As per Tesla’s Q1 2025 vehicle delivery and production report, “the changeover of Model Y lines across all four of our factories led to the loss of several weeks of production in Q1.”
This suggests that the Model Y’s sales remained strong in 2025 to the point where it could still claim the title of the world’s best-selling vehicle by volume, even with its sales being throttled during the first quarter of the year. It would then be interesting to see just how far the Model Y can go in 2026, especially considering the rollout of new variants like the six-seat extended wheelbase Model Y L, the affordable Model Y Standard, and the top-tier Model Y Performance.
News
Tesla shares epic 2025 recap video, confirms start of Cybercab production
The cinematic montage, posted by the official Tesla account on X, celebrated the company’s progress in EVs, energy, and Robotaxi development.
Tesla has released an epic year-in-review video for 2025, recapping some of its major achievements from refreshed models to autonomy breakthroughs and production ramps.
The cinematic montage, posted by the official Tesla account on X, celebrated the company’s progress in EVs, energy, and Robotaxi development while looking ahead to an even bigger 2026.
Tesla’s 2025 highlights recap
Tesla has had a busy 2025, as highlighted in the recap video. The video opened with Elon Musk explaining the company’s pursuit of sustainable abundance. A number of milestones were then highlighted, such as the rollout of FSD v14, Optimus’ numerous demos, the opening of the Tesla Diner in Hollywood, LA, the completion of the world’s first autonomous car delivery, and the launch of the Robotaxi network in Austin and the San Francisco Bay Area.
Tesla also highlighted several of its accomplishments over the year. As per the company, the Model Y was the year’s best-selling vehicle globally again, and Teslas became more affordable than ever thanks to the Model 3 and Model Y Standard. Other key models were also rolled out, such as the refreshed Model S and X, as well as the new Model Y, the new Model Y Performance, and the six-seat, extended wheelbase Model Y L.
The Megablock was also unveiled during the year, and the Supercharger Network grew by 18%. Over 1 million Powerwalls were also installed during the year, and the Cybertruck became the first EV truck to get both an IIHS Top Safety Pick+ award and an NHTSA 5-Star safety rating.
Cybercab production confirmed
Interestingly enough, Tesla also confirmed in its 2025 recap video that the production of the Cybercab has started. This bodes well for the vehicle, as it could result in the vehicle really being mass-produced in the first half of 2026. Elon Musk confirmed during the 2025 Annual Shareholder Meeting that Cybercab production should earnestly start around April 2026.
Musk has also noted that the Cybercab will be Tesla’s highest-volume vehicle yet, with the company aiming for an annual production rate of about 2 million units. “If you’ve seen the design of the Cybercab line, it doesn’t look like a normal car manufacturing line,” Musk said earlier this year. “It looks like a really high-speed consumer electronics line. In fact, the line will move so fast that actually people can’t even get close to it.”
News
Tesla Cybercab is changing the look of Austin’s roads, and it’s not even in production yet
Videos and photos showed the sleek, two-seat autonomous vehicles navigating traffic.
Even before entering production, Tesla’s Cybercab is already transforming the appearance of Austin’s streets, with multiple prototypes spotted testing in downtown areas recently.
Videos and photos showed the sleek, two-seat autonomous vehicles navigating traffic. Interestingly enough, the vehicles were equipped with temporary steering wheels and human safety drivers.
Recent Cybercab sightings
Over the weekend, enthusiasts captured footage of two Cybercabs driving together in central Austin, their futuristic silhouettes standing out amid regular traffic. While the vehicles featured temporary steering wheels and side mirrors for now, they retained their futuristic, production-intent exterior design.
Industry watcher Sawyer Merritt shared one of the vehicles’ videos, noting the increasing frequency of the autonomous two-seater’s sightings.
Previewing the autonomous future
Sightings of the Cybercab have been ramping in several key areas across the United States in recent weeks. Sightings include units at Apple’s Visitor Center in California, the Fremont factory test track, and in Austin’s streets.
The increased activity suggests that Tesla is in overdrive, validating the autonomous two-seater ahead of its planned volume production. Elon Musk confirmed at the 2025 Shareholder Meeting that manufacturing begins around April 2026 with ambitious targets, and during an All-Hands meeting earlier this year, Musk hinted that ultimately, Tesla’s factories should be able to produce one Cybercab every 10 seconds.
Elon Musk: Tesla Model Y is world’s best-selling car for 3rd year in a row
Tesla shares epic 2025 recap video, confirms start of Cybercab production
