Honda, LG Launch $4 Billion JV to Build EV Batteries in U.S.
Honda and LG Energy Solution (LGES) announced today the formal establishment of a joint venture to mass produce lithium-ion batteries for electric vehicles (EV) produced by Honda, with plans to build a $3.5 billion plant in Ohio.
Plans for the new JV, tentatively named L-H Battery Company, Inc., were unveiled by the companies last year, following the release of aggressive electrification goals by Honda for its vehicle fleet, including targets to make battery-electric and fuel cell electric vehicles represent 100% of its vehicle sales by 2040, progressing from sales of 40% by 2030 and 80% by 2035 in all major markets, including North America.
Corporate officers of the new JV include CEO Robert Lee, currently Executive Vice President, North America Regional Group Leader of LGES, and COO Rick Riggle, previously Plant Lead of Anna Engine Plant of Honda Development and Manufacturing of America.
“The formal establishment of this joint venture between LG Energy Solution 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.”
The new JV aims to begin construction of a new battery plant early this year near Jeffersonville, Ohio, with plans to begin mass production of advanced lithium-ion battery cells by the end of 2025, and anticipated annual production capacity of approximately 40GWh.
The companies stated that their overall investment related to the JV is projected to reach $4.4 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 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.”