LG Energy Solution and Honda Motor Co. have announced the creation of a joint venture to manufacture lithium-ion batteries for Honda’s electric vehicles. The companies plan to begin building a new battery plant in Fayette County, Ohio, early this year and complete it by the end of 2024. Mass production of advanced lithium-ion battery cells is set to begin by the end of 2025, with the plant aiming for an annual production capacity of approximately 40GWh. All batteries produced by the new JV will be supplied exclusively to Honda plants in North America to power battery-electric vehicles sold there.
LGES and Honda have committed to investing $3.5 billion and creating 2,200 jobs to establish the new production facility, which is projected to cost $4.4 billion in total. “LG Energy Solution has all the right assets to make this joint venture a success,” said Robert H. Lee, CEO of L-H Battery Company, Inc., “With two companies’ expertise combined, we will provide top quality batteries to ensure the successful launch of Honda EVs in North America and grow with the community here in Ohio by creating high value jobs.”