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Korean battery supplier LG Energy Solution Ltd. and Japan’s Honda Motor Co. will build a new $4.4 billion lithium-ion battery gigafactory for electric vehicles in the United States. The plant is expected to have an annual production capacity of roughly 40 GWh of pouch-type cells, which is equivalent to about 400,000 battery packs of 100 kWh each.

The use of pouch-type cell design for lithium-ion batteries reduces the weight and cost, as well as optimizes packaging efficiency at the battery level. The use of pouch-type batteries is gaining potential interest from EV makers, as researchers suggest that over 45% of batteries used for electric vehicles (EV) will be pouch-type batteries by 2025.

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