South Korean battery maker LG Energy Solution and Japan-based Honda Motor have decided to build their joint battery plant in Ohio, the US. They plan to start construction early this year and begin mass production of lithium-ion batteries by the end of 2025.
According to an announcement on January 13, the duo has established a new business tentatively called L-H Battery Company to take charge of the project. L-H Battery's capital is US$210 million, of which LGES holds 51% and Honda owns the rest. Robert H. Lee, executive vice president of LGES' North America regional group, will be L-H Battery's CEO.
With LGES and Honda's expertise combined, Lee said they will provide top-quality batteries to ensure the successful launch of Honda EVs in North America and grow with the community in Ohio.
The two companies said the joint plant will be located in Fayette County, approximately 40 miles southwest of Columbus. The overall investment in the project is estimated to reach US$4.4 billion, with 2,200 jobs being created.
According to the announcement, LGES and Honda aim to finish the construction by the end of 2024 and start mass production of batteries by the end of 2025. The annual production capacity is about 40GWh. All the batteries will supply Honda plants in North America. The automaker now operates a production base in Ohio.
LGES will scale up in North America through several joint battery projects with carmakers. It formed a joint venture with General Motors, Ultium Cells, in the country. The first plant of Ultium Cells started operation in Ohio last year. The ones in Tennessee and Michigan are expected to come online in these two years.
Stellantis is another partner of LGES. The pair will also build a joint battery plant in Ontario, Canada, with a production capacity of 45GWh. LGES also considers building a plant in Arizona on its own. But it slowed down the project due to the rising material costs last year.
LGES has been localizing sourcing for key raw materials in North America, in line with US policy to develop its own battery supply chain. It aims to secure 72% of critical materials and 100% of electrolytes in America or its free trade partners in the next five years.
