News
LG Energy Solution and Honda announce U.S. EV battery plant, incentives take focus
Korea’s LG Energy Solution and Japan’s Honda Motor Co. have announced they will build a lithium-ion battery manufacturing plant in the United States. The collaboration between LG Energy Solution and Honda brings yet another large-scale EV battery manufacturing project to the United States, following CATL and Panasonic, as President Biden’s Inflation Act will now focus on domestically-produced electric vehicles and components.
LG Energy Solution and Honda’s joint venture will see a total investment of $4.4 billion to establish a battery plant with an annual capacity of approximately 40 GWh. For comparison purposes, Tesla’s Gigafactory Nevada, which jointly produces battery cells and packs with Panasonic in Sparks, Nevada, had an annual output of 37 GWh in 2020.
LG Energy Solution and Honda will build pouch-type batteries at the joint venture facility, which could land in Ohio near Honda’s vehicle manufacturing plant. Pouch-type batteries differ from the traditional cylindrical design and are usually lighter weight and more flexible. They are also extremely safe and stable, but due to their design, there is a high possibility of leaking due to puncturing the cell or overheating. The development of pouch cells is usually more expensive than cylindrical cells.
The joint venture will begin to take shape after it is officially established later this year. Meanwhile, the plant’s construction is planned to begin in early 2023. Mass production is set to begin by the end of 2025.
LG Energy’s CEO, Youngsoo Kwon, said:
“Our joint venture with Honda, which has significant brand reputation, is yet another milestone in our mid-to-long-term strategy of promoting electrification in the fast-growing North American market. Since our ultimate goal is to earn our valued customers’ trust and respect, we aspire to position ourselves as a leading battery innovator, working with Honda in achieving its core initiatives for electrification, as well as providing sustainable energy solutions to discerning end consumers.”
Additionally, President, CEO, and Representative Director of Honda, Toshihiro Mibe, said:
“Honda is working toward our target to realize carbon neutrality for all products and corporate activities the company is involved in by 2050. Aligned with our longstanding commitment to build products close to the customer, Honda is committed to the local procurement of EV batteries which is a critical component of EVs. This initiative in the U.S. with LGES, the leading global battery manufacturer, will be part of such a Honda approach.”
LG Energy Solution also has joint venture agreements with General Motors, and Hyundai, among others.
How the Inflation Reduction Act has brought EV battery plans to the U.S.
The establishment of the Inflation Act brought on a $430 billion climate, health care, and tax bill that focuses on bringing the transition to EVs closer to home. Vehicles built outside of North America will no longer be eligible for tax credits, the bill said. Electric vehicles offer considerable rebates and tax credits, most often worth $7,500, as long as the manufacturer has not already sold 200,000 electric units, according to current rules. Tesla, General Motors, and, most recently, Toyota have reached the 200,000-vehicle cap.
According to Reuters, around 70 percent of the 72 current EV and plug-in hybrids on the U.S. market would no longer qualify for tax credits under the new rules. This has made those pushing for electrification efforts rethink their strategies as the United States is looking to make major changes in EV market share goals in a short period of time. California has already committed to selling its last new gas-powered vehicle in 2034, with a ban taking effect in 2035.
However, sourcing components and parts for EVs also will become a key factor in whether the vehicle qualifies for EV tax credits. By 2024, EV manufacturers are required to source at least half of their battery components in the United States or an allied country. By 2026, this number has to increase to 80 percent and will ultimately reach 100 percent in 2029, with all battery manufacturing taking place in North America.
These new stipulations have made manufacturers scramble their plans to align with the new Inflation Reduction Act, and will hopefully encourage automakers to make a more accelerated and deliberate change in terms of electrification plans.
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News
Tesla puts Giga Berlin in Plaid Mode with new massive investment
The facility, Tesla’s first in Europe, opened in 2022 and has become a cornerstone for Model Y production and, increasingly, in-house battery manufacturing. Recent announcements highlight a dual focus on scaling vehicle output and advancing vertical integration through 4680 battery cells.
Tesla is pushing forward with significant upgrades at its Gigafactory Berlin-Brandenburg in Grünheide, Germany, signaling renewed confidence in its European operations despite past market challenges.
The facility, Tesla’s first in Europe, opened in 2022 and has become a cornerstone for Model Y production and, increasingly, in-house battery manufacturing. Recent announcements highlight a dual focus on scaling vehicle output and advancing vertical integration through 4680 battery cells.
In April, plant manager André Thierig announced a 20 percent increase in Model Y production starting in July, following a record Q1 output of more than 61,000 vehicles. To support the ramp-up, Tesla plans to hire approximately 1,000 new employees beginning in May and convert 500 temporary workers to permanent positions.
The move is expected to lift weekly production significantly, addressing rebounding demand in Europe after a challenging 2025.
Today, we announced a $ 250m investment for our Giga Berlin Cell factory. This will enable 18GWh of annual 4680 cell production and create more than 1500 new jobs. Good news during challenging times for the German industry. pic.twitter.com/ou4SWMfWh9
— André Thierig (@AndrThie) May 12, 2026
The expansion builds on earlier progress. In 2025, Tesla secured partial approvals to add roughly 2 million square feet of factory space, raising potential annual vehicle capacity from around 500,000 toward 800,000 units, with longer-term ambitions approaching one million vehicles per year. Logistical improvements, new infrastructure, and battery-related facilities are already underway on company-owned land.
Battery production is the latest major focus. On May 12, Thierig revealed an additional $250 million investment in the on-site cell factory. This more than doubles the planned 4680 battery cell capacity to 18 gigawatt-hours annually—up from the 8 GWh target set in December 2025—while creating over 1,500 new battery-related jobs.
Total cell investments at the site now exceed previous figures, bringing the factory closer to full vertical integration: cells, packs, and vehicles produced under one roof. Tesla describes this as unique in Europe and a step toward stronger supply chain resilience.
The plans come amid regulatory and community hurdles. Earlier expansion proposals faced protests over environmental concerns and water usage, leading to phased approvals beginning in 2024. Tesla has navigated these by emphasizing sustainable practices and economic benefits, including thousands of local jobs in Brandenburg.
With nearly 12,000 employees already on site and production steadily climbing, Gigafactory Berlin is poised for growth. The combined vehicle and battery expansions position the plant as a key hub for Tesla’s European ambitions, potentially making it one of the continent’s largest manufacturing complexes if local support continues.
As EV demand recovers, these investments underscore Tesla’s commitment to scaling efficiently in Germany while addressing regional supply chain needs.
News
Honda gives up on all-EV future: ‘Not realistic’
Mibe believes the demand for its gas vehicles is certainly strong enough and has changed “beyond expectations.” As many drivers went for EVs a few years back, hybrids are becoming more popular for consumers as they offer the best of both worlds.
Honda has given up on a previous plan to completely changeover to EVs by 2040, a new report states. The company’s CEO, Toshihiro Mibe, said that the idea is “not realistic.”
Mibe believes the demand for its gas vehicles is certainly strong enough and has changed “beyond expectations.” As many drivers went for EVs a few years back, hybrids are becoming more popular for consumers as they offer the best of both worlds.
Mibe said (via Motor1):
“Because of the uncertainty in the business environment and also the customer demand, is changing beyond our expectation and, therefore, we have judged that it’ll be difficult to achieve. That ratio [100-percent electric in 2040] is not realistic as of now. We have withdrawn this target.”
Instead of going all-electric, Honda still wants to oblige by its hopes to be net carbon neutral by 2050. It will do this by focusing on those popular hybrid powertrains, planning to launch 15 of them by March 2030.
Honda will invest 4.4 trillion yen, or almost $28 billion, to build hybrid powertrains built around four and six-cylinder gas engines.
There are so many companies abandoning their all-electric ambitions or even slowing their roll on building them so quickly. Ford, General Motors, Mercedes, and Nissan have all retreated from aggressive EV targets by either cancelling, delaying, or pausing the development of electric models.
Hyundai’s 2030 targets rely on mixed offerings of electric, hybrid & hydrogen vehicles
Early-decade pledges from multiple brands proved overly ambitious as infrastructure lags, battery costs remain high in some markets, and many buyers prefer hybrids for their convenience and range. Toyota has long championed hybrids, while others have quietly extended internal-combustion timelines.
For Honda—historically known for reliable gasoline engines—this shift leverages its core strengths while buying time to refine electric technology. Whether the hybrid-heavy strategy will protect market share in an increasingly competitive landscape remains to be seen, but one thing is clear: the gas engine is far from dead at Honda, unfortunately.
Elon Musk
Delta Airlines rejects Starlink, and the reason will probably shock you
In a pointed exchange on X, Elon Musk defended SpaceX’s uncompromising approach to Starlink’s in-flight internet service, explaining why Delta Air Lines walked away from a deal.
SpaceX frontman Elon Musk explained on Wednesday why commercial airline Delta got cold feet over offering Starlink for stable internet on its flights — and the reason will probably shock you.
In a pointed exchange on X, Elon Musk defended SpaceX’s uncompromising approach to Starlink’s in-flight internet service, explaining why Delta Air Lines walked away from a deal.
Delta rejected Starlink because it insisted on routing all connectivity through its branded “Delta Sync” portal rather than allowing a simple Starlink experience.
Instead, the airline partnered with Amazon’s Project Kuiper—rebranded as Amazon Leo—for high-speed Wi-Fi on up to 500 aircraft, with rollout targeted for 2028. At the time of the announcement, Kuiper had roughly 300 satellites in orbit, while Starlink operated more than 10,400.
The use of the “Delta Sync” portal would not work for SpaceX, as Musk went on to say that:
“SpaceX requires that there be no annoying ‘portal’ to use Starlink. Starlink WiFi must just work effortlessly every time, as though you were at home. Delta wanted to make it painful, difficult and expensive for their customers. Hard to see how that is a winning strategy.”
Musk doubled down in a follow-up post:
“Yes, SpaceX deliberately accepted lower revenue deals with airlines in exchange for making Starlink super easy to use and available to all passengers.”
Not exactly. SpaceX requires that there be no annoying “portal” to use Starlink.
Starlink WiFi must just work effortlessly every time, as though you were at home.
Delta wanted to make it painful, difficult and expensive for their customers. Hard to see how that is a winning…
— Elon Musk (@elonmusk) May 13, 2026
SpaceX has structured its airline agreements to prioritize zero-friction access—no captive portals, no SkyMiles logins, no paywalls or ads blocking basic connectivity.
While this means forgoing higher-margin deals that would let carriers monetize the service more aggressively, it ensures Starlink feels like home broadband at 35,000 feet. Passengers on partner airlines such as United, Qatar Airways, and Air France have already praised the service for enabling seamless video calls, streaming, and work mid-flight without interruptions.
Delta’s choice reflects a different philosophy. By keeping Wi-Fi behind its Delta Sync ecosystem, the airline aims to drive loyalty program engagement and control the digital passenger journey. Yet, critics argue this short-term control comes at the expense of immediate competitiveness.
Airlines already installing Starlink are pulling ahead in customer satisfaction surveys, while Delta passengers face years of reliance on slower, legacy systems until Leo launches.
SpaceX’s decision to trade revenue for simplicity will pay off in the longer term, as Starlink is already positioning itself as the default high-speed option for carriers that value passenger satisfaction over incremental fees.
Musk’s focus on creating not only a great service but also a reasonable user experience highlights SpaceX’s prowess with Starlink as it continues to expand across new partners and regions.
Tesla puts Giga Berlin in Plaid Mode with new massive investment
Honda gives up on all-EV future: ‘Not realistic’
