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.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.t
Tesla has stunned by gaining yet another approval for its Full Self-Driving suite in Europe, its second in two days and its fifth overall.
Belgium will be the latest country to allow Tesla owners to utilize FSD on public roads in Europe, joining a quickly growing list that started with the Netherlands, Lithuania, and Estonia.
On Tuesday, Denmark announced its approval of the FSD suite, which has now been followed by Belgium just one day later.
The country’s Minister of Mobility, Annick De Ridder, announced the approval on her X account, stating that she had just signed the approval of Tesla FSD. It now goes to the country’s homologation department for the last step of the approval process.
De @Tesla community houdt hier al geruime tijd de vinger aan de pols over de toelating voor de FSD-technologie op onze Vlaamse en Belgische wegen.
Uit waardering voor jullie niet-aflatende interesse (en aanmoediging 😉), krijgen jullie hierbij de primeur: ik heb net de toelating… pic.twitter.com/Yrps4OHTj8— Annick De Ridder (@AnnickDeRidder) June 10, 2026
The Belgian approval is one of mighty importance because it truly shows how quickly countries in Europe could greenlight the FSD suite consecutively. Approvals are already coming in relatively quickly, which is a great sign.
Perhaps the next big development that could come from FSD approvals in Europe is an approval from a country like England, Italy, France, Spain, or Germany. It would be something to see how FSD would perform in a major European metro, such as London, Barcelona, Madrid, Paris, Rome, or Berlin.
Getting Full Self-Driving in Spain and England will be such huge milestones for Tesla. I am so excited to see how FSD performs in Madrid, Barcelona, and London, specifically.
The ultimate test will always be Mumbai or New Delhi. Excited for India’s eventual approval! https://t.co/paw9Ch1qmL pic.twitter.com/9RdDERVSSJ
— TESLARATI (@Teslarati) June 9, 2026
Full Self-Driving does an excellent job of roaming around major U.S. cities like New York and Los Angeles, but other high-profile international cities of significance would truly mark a line in the sand for Tesla, which can simply enable any vehicle in its customer-owned fleet to run FSD with the correct approvals.
SpaceX CEO Elon Musk recently confronted worries about orbital data centers and launching satellites in mass quantities in space, as some voiced concerns about crowding.
Musk’s SpaceX plans to combat the issue of needing data centers by launching them into space instead of taking up valuable real estate on Earth. It has been a major point of SpaceX’s future, including its looming IPO, which could be the largest ever.
In a recent interview filmed at SpaceX’s Starlink terminal factory in Bastrop, Texas, Elon Musk directly addressed concerns that deploying large numbers of AI satellites for orbital data centers could crowd Earth’s orbit. His message was straightforward and reassuring: space is vast beyond human intuition.
“Space is really big,” Musk said. “It’s not like space is gonna get crowded. Space is enormous. If you actually look at it relative to the Earth, the satellites are so tiny you can’t even see them.” He emphasized that even zooming in makes a satellite appear large, but from a planetary perspective, they are minuscule specks.
Elon on concerns that AI satellites will crowd space:
“Space is really big. It’s not like space is gonna get crowded. Space is enormous. If you actually look at it relative to the earth, the satellites are so tiny you can’t even see them.” https://t.co/Mvr7NpL25Q pic.twitter.com/5Fi629Rii7
— Sawyer Merritt (@SawyerMerritt) June 8, 2026
Musk pointed to SpaceX’s real-world experience operating roughly 10,000 Starlink satellites as evidence that large constellations can be managed safely. “We’ve got a pretty good idea of how to operate just really large constellations and do it safely,” he noted. SpaceX remains the only operator with meaningful experience at this scale, giving the company unique insight into tight orbital packing without compromising safety
The discussion highlighted SpaceX’s plans for “AI1” satellites—essentially orbiting racks of AI compute powered by massive solar arrays and cooled via radiative panels in space’s vacuum.
These satellites leverage proven Starlink V3 technology, making them simpler to design than communications satellites. A first-generation unit targets around 150 kW peak power, with a 70-meter wingspan for solar panels and radiators. Laser links will connect them to each other and the Starlink network, delivering low-latency access (on the order of a few milliseconds from low-Earth orbit).
FCC accepts SpaceX filing for 1 million orbital data center plan
Musk framed orbital data centers as a practical solution to Earth’s constraints on AI growth. Ground-based facilities face power shortages, water demands for cooling, and grid limitations. In space, constant sunlight (no day-night cycle), vacuum radiative cooling, and abundant solar energy offer clear advantages.
Production will ramp up at an expanded “Gigasat” factory in Bastrop, with solar manufacturing already underway and full AI satellite output expected at reasonable volume by the end of 2027. Starship’s rapid, high-volume launch capability, aiming for multiple flights per hour, will make massive deployment feasible.
Critics sometimes raise risks like space debris or Kessler syndrome, but Musk’s response underscores scale: even a million satellites would represent an imperceptible fraction of available orbital volume when viewed against Earth’s size. SpaceX’s automated collision avoidance and deorbiting designs for Starlink further mitigate concerns.
This vision ties into broader ambitions. Musk sees orbital AI compute as a step toward harnessing more of the Sun’s energy, advancing humanity on the Kardashev scale from a Type 0 civilization toward Type 1 and eventually Type 2. By moving power-hungry data centers off-planet, SpaceX aims to unlock orders-of-magnitude more compute while preserving Earth’s resources.
Musk’s comments should ease public anxiety. With proven operational expertise, incremental engineering, and the immensity of space itself, orbital data centers represent not overcrowding, but smart expansion into the final frontier.
Tesla Full Self-Driving (Supervised) is currently listed as a Level 2 suite in terms of its passenger cars. As its Robotaxi platform continues to move quickly, it has been recognized as a Level 4 ride-sharing program by the State of Texas, as Tesla recently self-certified itself.
However, a Wall Street analyst is arguing that Tesla (NASDAQ: TSLA) has effectively achieved Level 4 autonomy in most conditions in all of its vehicles, drawing on personal experience and data released by the company.
Alex Potter of Piper Sandler said in a note to investors on Wednesday that “Tesla has solved the self-driving puzzle,” pointing to decisions to offer insurance discounts for FSD-enabled policies as a signal of confidence, which is backed up by stellar safety records compared to human driving.
Investing.com initially reported on Potter’s new note.
Additionally, Potter looks at the recent start of Cybercab production at Giga Texas as a potential indication that Tesla is ready to offer some level of unsupervised driving at least in the near future. The Cybercab has no steering wheel or pedals, completely eliminating the ability for human input.
He also sees Tesla’s allocation of “several hundred million USD (if not $1B+)” as confidence internally, seeing as it would be tough to set aside that amount of capital toward a project that the company does not see as relatively near-term.
Forward thinking, especially as Cybercab has no human controls, it would make sense that Tesla is at least close to self-driving. How close is another question.
Tesla has routinely teased that unsupervised FSD is close, but there are still a lot of things it feels as if the company has to roll out some more capability, including unsupervised parking features, known as “Banish,” better operation with regional self-driving performance, and other improvements.
That is not to say that Tesla FSD is super impressive already. It has already completed coast-to-coast drives across the United States and Canada, it routinely takes the stress out of driving for most people, and it has proven through Tesla Safety Reports that it is safer and involved in accidents less frequently than humans.
🚨 These are the first-ever FSD safety statistics out of the Netherlands, showing it was over 3.5x safer than human driving on Dutch roads.
The most recent numbers out of Tesla for North America show:
-Over 5.5 million miles between accidents for Teslas using FSD
-660k miles… https://t.co/XKlRzgSGEh pic.twitter.com/HX6kzh0ZKc— TESLARATI (@Teslarati) June 9, 2026
Even Potter believes it is capable, as he used it to go from Missoula, Montana, to Minneapolis, Minnesota, back in April.
“There’s no substitute for personal experience,” he wrote.
Tesla stuns with another FSD approval in Europe, its second in two days
SpaceX’s Elon Musk relieves worries about orbital data centers
