LG Energy Solution (LGES) and Honda Motor have announced the formal establishment of their joint venture, which will look to produce lithium-ion batteries for new Honda EVs. The venture itself is tentatively named L-H Battery Company, Inc and is 51% owned by LGES, with 49% owned by Honda. Leading its operations are Robert H. Lee (LGES), who will act as its Executive VP and North America Regional Group Leader, while Rick Riggle (Honda) will be its COO.
The JV plans to begin construction of a new battery plant in Ohio in early 2023, with assembly completed before the end of 2024. By the end of 2025, LG Energy Solution & Honda are expecting mass production of the JV’s lithium-ion battery cells to begin by the end of 2025. At launch, the plant will aim to have an annual production capacity of approximately 40 GWh. The batteries produced there will be supplied exclusively to Honda’s plants across North America for fitment in its BEVs sold in the region.
The new plant will be located approximately 40 miles (64 kilometers) southwest of Columbus in Fayette County, near Jeffersonville, Ohio. LG Energy Solution and Honda have committed to investing $3.5 billion (€3.2 billion) to help establish the new production facility, while creating 2,200 jobs in the process. The companies’ overall investment related to the JV is projected to reach $4.4 billion (€4 billion).
