LG Energy Solution (LGES) and Honda have announced the formation of the joint-venture (JV) L-H Battery Company, which will produce lithium-ion batteries for Honda electric vehicles (EVs).
The companies will begin construction of a new battery plant early this year with the goal of completion by the end of 2024 and commencement of mass production of advanced lithium-ion battery cells by the end of 2025. The aim is an annual production capacity of approximately 40GWh. All batteries produced at the new facility will be supplied exclusively to North American Honda plants to power battery-electric vehicles sold in North America.
LGES and Honda have committed to investing US$3.5bn to construct the new plant, which will be approximately 64km southwest of Columbus, Ohio. The companies’ overall investment in the JV is projected to reach US$4.4bn.
Robert Lee, CEO of L-H Battery Company, commented, “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.”