Honda, LG Energy Solutions to produce EV batteries

Honda and LG Energy Solutions announced that they are formally entering a joint venture to produce lithium-ion batteries for electric vehicles (EV).

According to Honda, construction of a new battery plant will begin early this year with the goal of completion by the end of 2024. Further, the new plant — under the company name L-H Battery Company, Inc. — aims to mass produce advanced lithium-ion battery cells by the end of 2025.

The abovementioned plant will be located in Jeffersonville, Ohio in the United States (US).

“The formal establishment of this joint venture between LG Energy Solutions and Honda to produce EV batteries in Ohio is another major step toward our electrified future. We are excited to move forward with such a strong partner in LG Energy Solution and, together, we look forward to establishing a strong relationship with the community in Fayette County, Ohio,” said L-H Battery Company, Inc. Chief Operating Officer Rick Riggle.

Honda explained that the plant aims to have an annual production capacity of approximately 40 gigawatt-hours. All batteries produced by the new joint venture will be supplied exclusively to Honda plants in North America to power battery-electric vehicles sold in the region.

Further, both Honda and LG Energy Solutions have committed to investing $3.5 billion (around P191.691 billion) and creating 2,200 jobs to establish the new production facility. The companies’ overall investment related to the joint venture is projected to reach US$4.4 billion (about P240.961 billion).

“LG Energy Solution has all the right assets to make this joint venture a success, including the financial stability, quality, competitiveness, and production capacity with global operational expertise. With the 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,” commented L-H Battery Company, Inc. Chief Executive Officer Robert Lee.

Photo from Honda

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