To be located 64km southwest of Columbus, the facility is expected to have an annual production capacity of nearly 40GWh

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Honda Motor and LG Energy select Ohio for new EV battery facility. (Credit: LG Energy Solution)

South Korean battery manufacturing firm LG Energy Solution (LGES) and Japan’s Honda Motor have selected a location in Fayette County, Ohio for their new $4.4bn joint venture (JV) electric vehicle (EV) battery plant.

The two companies will initially commit an investment of $3.5bn in the battery plant, which is anticipated to generate 2,200 jobs.

To be located 64km southwest of Columbus, the facility is expected to have an annual production capacity of nearly 40GWh.

Honda and LGES intend to commence the construction of the new EV battery facility in early 2023 and complete it by the end of 2024. The mass production of pouch-type lithium-ion batteries is expected to be achieved by the end of 2025.

LGES advanced automotive battery division executive vice president Dong-Myung Kim said: “In another major step toward electrification, LG Energy Solution’s innovative battery technologies will not only power Honda’s brand-new EV models but support Ohio’s green economy.

“We extend our gratitude to everyone who played a role in making this happen. With our commitment to building the world-best quality products, together with Honda, we look forward to not only creating thousands of quality jobs here in Ohio, but growing together with the community.”

The JV between Honda and LGES, subject to regulatory approvals, will be formally established in 2022. It was announced by the parties in August 2022.

The batteries produced at the new JV plant are expected to be supplied to Honda facilities to manufacture EVs to be sold in North America.

American Honda Motor executive vice president Bob Nelson said: “Honda is proud of our history in Ohio, where our U.S. manufacturing operations began more than four decades ago.

“Now, as we expand Honda’s partnership with Ohio, we are investing in a workforce that will create the power source for our future Honda and Acura electric vehicles.

“We want to thank the leaders of the state of Ohio, as well as in Fayette County, Jefferson Township, Jeffersonville, and Washington Court House for welcoming this new joint venture between Honda and LG Energy Solution and giving us another Ohio community to call home.”