LG Energy Solution, Honda Motor breaks ground for joint venture in US

LG Energy Solution and Honda Motor held a groundbreaking ceremony for their electric vehicle (EV) battery production joint venture in the United States. The companies are building their plant in Jeffersonville, Ohio, and the event was held on Wednesday, March 1.

As per The Korea Times, LG Energy Solution and Honda Motor’s EV battery JV have been named L-H Battery Company. As the construction officially starts, the companies are expecting the facility to be completed by the end of 2024.

Upon completion, the facility will proceed with the operation and begin mass production of EV batteries that will be supplied to Honda Motor’s factory in North America from the end of 2025. The facility is being built using the $4.4 billion total investment for this project. It is expected to have a production capacity of 40 gigawatts hours per year.

It was reported that the joint venture between the South Korean battery maker and Japanese car company had gained so much attention in the industry because it is rare for companies from the two countries to join forces. It was in August of last year when LG Energy and Honda Motor agreed to collaborate and form the JV to supply batteries for electric vehicles in the North American region where the demand for electrified cars is growing.

They announced the final site of their factory in October 2022, and in January this year, they formally established the L-H Battery Company. In any case, Korea Joongang Daily reported that this week's groundbreaking event was attended by the LG Energy Solution president, Kim Dong Myung, the president of Honda Motor, Toshihiro Mibe, and Ohio Gov. Mike DeWine.

The LGES president said that in the entire history of LG Group, this JV is the company’s first and largest project with Honda Motor. Thus, he said that it has a special meaning for both sides in terms of battery production for Honda's first generation of EVs.

“It is an honor to represent two great corporations, Honda and LG Energy Solution, both with a long, proud history of success. LG Energy Solution is the leading battery manufacturer globally and is investing aggressively to meet the demand for electrification,” LGES’ chief executive officer, Robert H. Lee, said in a press release.”

The CEO added, “We are excited to embark on this partnership with Honda, a leader in the global auto industry with a reputation for quality and reliability. If we harness these strengths, I have no doubt our joint venture will be the most successful battery plant in the world, and we look forward to being a part of this massive transformation toward sustainability.”