Automobile company Honda Motor has established a joint venture (JV) with LG Energy Solution (LGES) to produce lithium-ion batteries for its electric vehicles (EVs).
The JV, tentatively named L-H Battery Company, is located in Jeffersonville, Ohio. It is 51-percent owned by LGES, while Honda owns the remaining 49-percent stake.
The JV will start construction of a new battery facility early this year near Jeffersonville, with completion expected by the end of 2024. The companies plan to start mass production of advanced lithium-ion battery cells at the facility by the end of 2025.
The plant will have an annual production capacity of about 40 GWh, and all batteries produced by the JV will be supplied exclusively to Honda plants in North America to power battery-electric vehicles sold in the continent.
Honda and LGES have committed to invest $3.5 billion to establish the new production facility and create 2,200 jobs. The total investment for 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," Robert H. Lee, CEO of L-H Battery Company, said. "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.”
Honda Motor is a global manufacturer of automobiles, motorcycles, and power equipment. It aims to achieve carbon neutrality for all products and corporate activities, as well as zero traffic collision fatalities involving Honda automobiles and motorcycles, by 2050.
LG Energy Solution, a split-off from South Korean chemical company LG Chem, is a global