Tentatively named L-H Battery, the JV between LG Energy Solution and Honda Motor is expected to commence construction of a new battery plant in early 2023, which is expected to have an annual production capacity of nearly 40GWh
LG Energy Solution, Honda Motor formally establish their $4.4bn EV battery JV in the US. (Credit: LG Energy Solution)
South Korean battery manufacturer LG Energy Solution (LGES) and Japan’s Honda Motor have officially established their $4.4bn joint venture (JV) company in the US to produce lithium-ion batteries for electric vehicles (EVs).
Tentatively named L-H Battery, the JV is expected to commence construction of a new battery plant in early 2023. Construction is aimed to be completed by the end of next year.
LG Energy Solution and Honda Motor will initially commit an investment of $3.5bn in the battery plant, which is anticipated to generate 2,200 jobs.
To be located nearly 64.4km southwest of Columbus in Fayette County, near Jeffersonville, the new facility is expected to have an annual production capacity of nearly 40GWh.
The mass production of advanced lithium-ion battery cells at the plant is anticipated to commence by the end of 2025.
L-H Battery CEO Robert Lee said: “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 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.”
LG Energy Solution and Honda Motor reached an agreement in August 2022 to establish the JV.
The South Korean battery manufacturing firm will own a stake of 51% in the new JV company while the remaining 49% will be held by the Japanese automotive company.
According to LG Energy Solution, all the EV batteries produced by the new JV will be exclusively delivered to Honda Motor’s plants in North America to power battery-EVs sold in the region.