Toyota and Honda are spending BIG to catch up with EVs...

#Toyota and #Honda are about to change their identity with NEW battery investments
#LG #Panasonic
Toyota announced an additional investment of $2.5 billion in its newest North American facility, Toyota Battery Manufacturing North Carolina (TBMNC). This investment adds capacity to support battery electric vehicle (BEV) battery production and adds 350 jobs, bringing the total employment to approximately 2,100. Scheduled to begin production in 2025, the facility will produce batteries for hybrid electric vehicles (HEV) and BEVs.

Last year, Toyota Motor Corporation announced a global investment of approximately $70 billion (8 trillion JPY*) for electrification efforts. Today, as part of this aspirational goal, TMC announced a future battery production commitment of up to $5.6 billion (730 billion JPY), which includes the new North Carolina investment.

LG Energy Solution (LGES; KRX: 373220) and Honda Motor Co., Ltd. (NYSE:HMC) today announced an agreement to establish a joint venture (JV) company to produce lithium-ion batteries in the U.S. to power Honda and Acura EV models for the North American market.

With this agreement, LGES and Honda will invest a total of USD $4.4 billion and establish a new JV plant in the U.S. The plant aims to have an annual production capacity of approximately 40GWh.

The pouch-type batteries produced at the new JV plant will be supplied exclusively to Honda facilities in North America. While the location for the joint venture plant is yet to be finalized, based on Honda’s plans for EV production in North America, the two companies aim to begin construction in early 2023, in order to enable the start of mass production of advanced lithium-ion battery cells by the end of 2025.

Sources:

00:00 - Toyota, Honda to invest $10 billion for battery production
00:56 - Toyota's Big Battery Plans
05:07 - Toyota Production Map
06:29 - Panasonic's big plant
07:28 - Toyota's steel prices go up
08:00 - Honda's Battery Plant with LG
13:06 - Closing Thoughts

[wheelmannc]

The auto manufactures, domestic and foreign need to be spending billions in the US to upfit and build new rail infrastructure...if the bulk of these batteries are coming from a future KS plant, with NC, TX and others being in the outer areas, we need major rail for transportation to save our highways from the weight problems with trucks. To keep and improve our truckers, have them be better structured on mid, short, and local routes with better pay to offset the longer routes that rail would be picking up. With a proper feeder network of rail and support from our truckers, we can transform the world in many areas of transportation.

[thomas]

It’s my opinion that the Japanese will have an easier time (relatively speaking) pivoting to EVs than American and European automakers.

This may seem against the grain but they do have a few things going for them. The first is that Tesla and other electric car companies can’t compete on price with the mainstream gas models fromToyota, honda, hyundai, etc.

The second, is that those companies seem to have a lead on next gen battery tech which could be advantageous.

The only real area I see them needing some outside help with would be software but that shouldn’t be a huge issue.

[donswier]

Toyota should stick to their Prime strategy.
It eliminates the #1 problem with BEVs: drivers being held hostage to public charging networks.

-Primes can get by with a battery MUCH lighter & cheaper than Tesla.
-The RAV4 Prime still does over 14, 000 miles per year gas-free (if charged overnight).
-With PHEVs & Range Extenders, all the hysteria & plug rage regarding public chargers will disappear.

[NBPT]

It's nice that you're mentioning things like the cost of this change to our environment (battery plants being built). I hope you can continue to explore the trade offs as everyone scrambles to electrify. Their is no free lunch. Perhaps a segment on the change in demands to the grid as everyone starts recharging and recycling batteries. Thanks Kirk

[pjsneeringer]

USA NEEDS to produce infrastructure BEFORE gas engines go away. IMHO 20 years yet

[SuperAsian]

It’s a bad idea to rush into something..

[Mark-in-Texas]

I'm looking forward to production of EV's ramping up, with hopes the prices drop. I've seen YouTube videos of promising battery technology in the works, and if it pans out, it would be great for the future too.

[GarrettZwolenski]

Another thing that might have been a factor in KS Panasonic factory is the large intermodal facility in Edgerton that will make it easy to ship things on trucks and transition to rail.

[Garrettpattonaf]

Panasonic makes the ELS speakers in the Acuras. That’s interesting they went with LG

[OnkelPHMagee]

4:00 Thanks for the reality check about the costs of being "eco-friendly." You're so right.

[mikenemeth]

Indiana plant is not in Indianapolis. It’s in Princeton which is north of Evansville.

[Lesiunta]

Loved your break down into the different carmakers production/assembly plants along with the view into the battery market suppliers. I'm wondering if in the future you go into that greater detail for the other OEMs as well and then share those private lists with us! Well done, Kirk!

[bsmith]

For years now we have been hearing "the competition is coming..." Still waiting - and this announcement, just like the one where Toyota previewed their all electric line -up last year (sure?), does nothing to change the fact that the competition is no where is sight. Amazing how the legacy makers (especially the Japanese companies) are so dangerously behind.

[BlackNAVYAmericanVET]

California is making statements right now, that the state cannot Support charging cars Only certain hours🤣🤣🤣🤣

[RAZGRZ]

We will be footing the bill when the green machine ends.

[tmwei]

Although I'm not currently in the market for an EV I know eventually I won't have much of a choice. Current EVs that are available are not attractive to me. Tesla has a huge lead in the EV market with sales and their charging infrastructure and the EVs from the mainstream auto brands are still going through growing pains. The main detractor with Tesla for me is mainly its business practice and inferior build quality compared to mainstream car makers. Tesla has a lot of tech experience but less car building experience. The problem with mainstream EVs is the charging infrastructure and charger reliability. I don't know about others but when I'm finally in the market for an EV my top priorities are ranges, charge speed, and plenty of reliable charging stations. Its great that more and more car manufactures are making EVs but they're useless if we don't have adequate charging stations to support them. Having new EV models is great but what excites me more is news about improving the charging infrastructure and plans to standardize charging.

[benchampion]

I live in South Texas and there aren’t many charging stations in my area or in most of Texas with the exception of the big cities but in rural areas there are few to none charging stations. So I will not be driving an EV.

[ELMS]

I’m a BEV convert (after owning an eSoul for two years) and enjoy your BEV content.

[chrisgray]

Honda electric would be good, just need faster charging times

[tomg]

Better products and batteries are the future, if the price is affordable to purchase. Keep producing EV but a must to keep prices low. Rather going hybrid what about investing in hydrogen?