LG Energy Solution and Honda Motor Co. officially announced the formal establishment of the EV battery joint venture (JV), tentatively named L-H Battery Company.
The new lithium-ion battery cell factory will be built in Fayette County, near Jeffersonville, in Ohio, with a target manufacturing capacity of 40 GWh annually. Construction will begin in early 2023 with a goal to complete the works by the end of 2024 and start mass production by the end of 2025.
The partnership between LG Energy Solution is a way for Honda to secure a stable, high-volume supply of pouch lithium-ion battery cells for its upcoming all-electric models in North America. It's important to note that the factory's output will be exclusively to satisfy Honda's needs.
Let's recall that the first Honda Prologue electric model (and Acura electric model) will launch in 2024, using General Motors' Ultium platform, with an initial annual sales target is 70,000 units.
Gallery: 2024 Honda Prologue
Comments by Robert H. Lee, CEO of L-H Battery Company, Inc. 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."
Comments by Rick Riggle, COO of L-H Battery Company, Inc. said:
"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."
Honda and LG Energy Solution EV battery JV:
- type: joint venture
- name: L-H Battery Company, Inc. (tentative name)
- investment: $3.5 billion plant
"The companies’ overall investment related to the JV is projected to reach $4.4 billion" - location: Fayette County, Ohio
- battery type: lithium-ion pouch-type batteries
- volume: up to 40 GWh annually
- use: Honda and Acura models for the North American market
- construction start (plan): early 2023 and completion by the end of 2024
- mass production start (plan): by the end of 2025
- jobs: about 2,200
