Ohio JV Battery Plant  – Honda and LG Energy Solution

Honda and LG Energy Solution (LGES; KRX: 373220) today confirmed that their new joint venture battery plant will be located in Fayette County, Ohio, about 40 miles southwest of Columbus. The plant was announced in April of 2022 but not its location. Claimed are investments of $3.5 billion and 2,200  new jobs, pending final government approvals. The companies’ overall investment related to the JV is projected to reach $4.4 billion. (autoinformed.com on: LG Energy Solution, Honda to Form US EV Battery Production)

The two companies plan to begin construction in early 2023, in order to complete the new production facility by the end of 2024. The plant aims to have ~40GWh of annual production capacity as it starts mass production of pouch-type lithium-ion batteries by the end of 2025.

Honda previously announced plans to begin production* and sales of Honda EVs in North America in 2026, based on its new Honda e:Architecture. The EV batteries produced at the new JV plant will be provided to Honda auto plants to produce EVs to be sold in North America.

This latest JV announcement with Honda reflects the previously announced LG Energy Solution’s mid- to long-term strategy to focus on North America, the fastest growing EV market. LGES plans to further expand its production capacity in the region, as well as reinforce its local supply chain for key critical minerals.

As part of its goal to achieve carbon neutrality for all products and corporate activities by 2050, Honda announced a vision to make battery-electric and fuel cell electric vehicles represent 100% of its vehicle sales by 2040.

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*using domestic and globally sourced parts