The new battery plant will exclusively supply Honda plants in North America to power battery-electric vehicles produced and sold in in the region
As announced last year the new plant will be in Fayette County, Ohio, about 40 miles southwest of Columbus. Having now formalised the joint venture (JV), construction of the battery plant will begin early this year with the goal of completion by the end of 2024 and starting mass production of advanced pouch-type, lithium-ion battery cells by the end of 2025.
LG Energy Solution (LGES) and Honda have committed to investing $3.5 billion and creating 2,200 jobs to establish the new production facility. The companies say overall investment related to the JV is projected to reach $4.4 billion. The plant aims to have an annual production capacity of approximately 40GWh. All batteries produced by the new JV will be supplied exclusively to Honda plants in North America to power battery-electric vehicles sold in North America.
The new company has been tentatively named, L-H Battery Company.
LGES says it plans to further expand its production capacity in the region, as well as reinforce its local supply chain for key critical minerals.