LG Energy Solution and Honda Break Ground for New Joint Venture EV Battery Plant in Ohio

Rhea-AI Summary

Honda and LG Energy Solution (LGES) have commenced construction on a new joint venture EV battery plant in Fayette County, Ohio, marking an initial investment of $3.5 billion projected to reach $4.4 billion. The facility, covering over 2 million sq. ft., aims to be operational by the end of 2024 and will support mass production of lithium-ion batteries for Honda's EV production by late 2025. The JV is anticipated to create 2,200 jobs and will produce approximately 40GWh of batteries annually. Honda, aiming for carbon neutrality by 2050, plans to invest an additional $700 million in Ohio for re-tooling existing plants for EV production.

Positive

• Investment of $3.5 billion projected to reach $4.4 billion.
• Creation of 2,200 jobs in Fayette County, Ohio.
• Expected annual production capacity of approximately 40GWh.
• Aims to support Honda's EV production in North America.

Negative

• None.

• Local and state officials join global Honda and LGES executives in groundbreaking event
• New renderings offer first look at the new EV battery facility, an initial $3.5 billion investment projected to reach $4.4 billion overall
• Construction 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

JEFFERSONVILLE, Ohio, Feb. 28, 2023 /PRNewswire/ -- Honda and LG Energy Solution (LGES; KRX: 373220) today held the official groundbreaking ceremony for a new joint venture EV battery plant over 2 million square feet in size, to be located in Fayette County, near Jeffersonville, Ohio.

The JV company will deliver lithium-ion batteries to support Honda's plan to build EVs in North America.

The two companies have committed to invest $3.5 billion in the new joint venture (JV) facility, with their overall investment projected to reach $4.4 billion. The facility is scheduled to be completed by the end of 2024, with plans to create 2,200 jobs, and the aim for approximately 40GWh of annual production capacity. The JV company will deliver lithium-ion batteries with cutting-edge technology to support Honda's plan to build battery-electric vehicles (EV) in North America.

The ceremony's attendees included Toshihiro Mibe, president and CEO of Honda Motor Co., Ltd., Dong-Myung Kim, president and head of the Advanced Automotive Battery Division of LG Energy Solution, Ohio Governor Mike DeWine, Lieutenant Governor Jon Husted, other members of state government and local community officials.

At the ceremony, the leaders of the new JV company, CEO Robert H. Lee and COO Rick Riggle, revealed a rendering of the new facility which will be located about 40 miles southwest of Columbus.

"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 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 a 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 the customer values and reinforcing the collective initiatives for clean energy transformation.

For more information about the joint venture battery plant, visit www.lgeshonda.com.

About LG Energy Solution

LG Energy Solution (KRX: 373220), a split-off from LG Chem, is a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. With 30 years of experience in revolutionary battery technology and extensive research and development (R&D), the company is the top battery-related patent holder in the world with over 25,000 patents. Its robust global network, which spans North America, Europe, Asia, and Australia, includes battery manufacturing facilities established through joint ventures with major automakers such as General Motors, Stellantis N.V., Hyundai Motor Group, and Honda Motor Co. Ltd. At the forefront of green business and sustainability, LG Energy Solution aims to achieve carbon neutral operations by 2050, while embodying the value of shared growth and promoting diverse and inclusive corporate culture. To learn more about LG Energy Solution's ideas and innovations, visit https://www.lgensol.com.

About Honda Motor Co., Ltd.

Honda Motor Co., Ltd. (NYSE: HMC) is responsible for the development, production and sales of automobiles, motorcycles, power products and aviation products worldwide. Honda now delivers over 30 million products annually through its three product lines. Honda and its partners build products in more than 60 manufacturing plants in 27 countries, employing about 220,000 associates globally. On a global basis by 2050, Honda is striving to achieve carbon neutrality for all products and corporate activities, as well as zero traffic collision fatalities involving Honda automobiles and motorcycles.

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SOURCE Honda

FAQ

What is the investment amount for the new Honda and LGES EV battery plant?

The initial investment for the new EV battery plant is $3.5 billion, projected to increase to $4.4 billion.

When is the Honda and LGES EV battery facility expected to start production?

The facility is expected to begin mass production of batteries by the end of 2025.

How many jobs will the new joint venture EV battery plant create?

The joint venture is anticipated to create about 2,200 jobs.

What is the purpose of the new EV battery plant for Honda?

The plant will exclusively provide lithium-ion batteries to Honda plants for producing EVs for sale in North America.

What are Honda's sustainability goals related to the new battery facility?

Honda aims for carbon neutrality by 2050 and plans for battery-electric and fuel cell electric vehicles to constitute 100% of its vehicle sales by 2040.