LG Energy Solution and Honda invest $4.4 billion for new battery plant in Ohio
LG Energy Solution and Honda Break Ground for New Joint Venture EV Battery Plant in Ohio.
- Local and state officials join global Honda and LGES executives in a groundbreaking event.
- New renderings offer the first look at the new EV battery facility, an initial $3.5 billion investment projected to reach $4.4 billion overall.
- Construction is set to rapidly scale up so that the facility can be completed by the end of 2024 in support of the start of mass production at the end of 2025.
- EV batteries from the facility, over 2 million sq. ft. in size, is to be provided exclusively to Honda auto plants to produce EVs to be sold in North America.
February 28, 2023 — JEFFERSONVILLE, Ohio – Local and state officials join Honda and LGES executives in a groundbreaking event. New renderings offer the first look at the new EV battery facility, an initial $3.5 billion investment projected to reach $4.4 billion overall Construction is set to rapidly scale up so that the facility can be completed by the end of 2024 in support of the start of mass production at the end of 2025.
EV batteries from the facility, over 2 million sq. ft. in size, to be provided exclusively to Honda auto plants to produce EVs to be sold in North America.
“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 demand for electrification. We are excited to embark on this partnership with Honda, a leader in the global auto industry with a reputation for quality and reliability,” said Lee. “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.”
“We have talked a lot about the partnership between Honda and LG Energy Solution, but the communities of Southern Ohio are a part of this venture, too, and we see it not so much as a joint venture, but a tri-venture between our companies and the community,” said Riggle. “We share similar values and perspectives regarding the relationship we want to have with our new workforce, and this spirit of teamwork will be key to our success.”
The location of the joint venture between Honda and LGES was announced on Oct.11, 2022, and was formally established on Jan. 12, 2023. The plant aims to start mass production of pouch-type lithium-ion batteries by the end of 2025, to be provided exclusively to Honda auto plants to produce EVs to be sold in North America.
Honda also has announced plans to invest $700 million to re-tool several of its existing auto and powertrain plants in Ohio for the production of electric vehicles that will utilize the batteries made at the new JV facility. Honda plans to begin production and sales of Honda EVs in North America in 2026, based on its new Honda e: Architecture. As part of its goal to achieve carbon neutrality for all products and corporate activities by 2050, Honda has the vision to make battery-electric and fuel-cell electric vehicles represent 100% of its vehicle sales by 2040.
Backed by the largest global battery manufacturing network it has established, LG Energy Solution has been carrying out its initiative to expedite the global EV transition, with its annual production capacity of 200GWh to further expand to 300GWh by the end of this year. Capitalizing on its ample R&D experience and operational expertise, LGES is devoted to providing competitive power solutions for its customers, thereby promoting customer values and reinforcing the collective initiatives for clean energy transformation.
LG Energy Solution a split-off from LG Chem, is a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. The company is the top battery-related patent holder in the world with over 25,000 patents.