LG Energy Solution and Honda Formally Establish Battery Production Joint Venture

Rhea-AI Summary

LG Energy Solution and Honda Motor Co. have officially established a joint venture to produce lithium-ion batteries for Honda's electric vehicles (EVs). The new facility, located in Fayette County, Ohio, will create approximately 2,200 jobs and involves a combined investment of $4.4 billion. Construction will begin early this year, aiming for plant completion by late 2024, with mass production expected by the end of 2025. The facility will have an annual production capacity of around 40GWh, exclusively supplying batteries to Honda's North American operations.

Positive

• Establishment of a joint venture with LG Energy Solution to enhance battery production capabilities.
• Investment of $4.4 billion, creating approximately 2,200 jobs in Ohio.
• Anticipated annual production capacity of 40GWh for EV batteries, exclusively for Honda's North American market.

Negative

• None.

MARYSVILLE, Ohio , Jan. 13, 2023 /PRNewswire/ -- LG Energy Solution (LGES; KRX: 373220) and Honda Motor Co., Ltd. (Honda) today announced the formal establishment of the joint venture (JV) which will produce lithium-ion batteries for electric vehicles (EV) produced by Honda.

LGES and Honda have committed to creating 2,200 jobs to establish the new production facility.

The JV will begin construction of a new battery plant early this year with the goal of completion by the end of 2024 and starting mass production of advanced lithium-ion battery cells by the end of 2025. The plant aims to have an annual production capacity of approximately 40GWh. All batteries produced by the new JV will be supplied exclusively to Honda plants in North America to power battery-electric vehicles sold in North America. 

The new plant will be located approximately 40 miles southwest of Columbus in Fayette County, near Jeffersonville. LGES and Honda have committed to investing $3.5 billion and creating 2,200 jobs to establish the new production facility. The companies' overall investment related to the JV is projected to reach $4.4 billion.

<About the new JV>
Company name:	L-H Battery Company, Inc. (tentative name)
Location:	Jeffersonville, Ohio, U.S.A.
Capital:	$ 210 million USD
	(Percentage of ownership: 51% LGES, 49% Honda)
Corporate officers:	Robert H. Lee, CEO (Currently Executive Vice President, North America Regional Group Leader of LGES)
	Rick Riggle, COO (Previously Plant Lead of Anna Engine Plant of Honda Development and Manufacturing of America)

 

• Comments by Robert H. Lee, CEO of L-H Battery Company, Inc.
  "LG Energy Solution has all the right assets to make this joint venture a success, including the financial stability, quality, competitiveness, and production capacity with global operational expertise," said Robert H. Lee. "With two companies' expertise combined, we will provide top quality batteries to ensure the successful launch of Honda EVs in North America, and grow with the community here in Ohio by creating high value jobs."
  
  
•  Comments by Rick Riggle, COO of L-H Battery Company, Inc.
  "The formal establishment of this joint venture between LG Energy Solution and Honda to produce EV batteries in Ohio is another major step toward our electrified future," said Rick Riggle. "We are excited to move forward with such a strong partner in LG Energy Solution and, together, we look forward to establishing a strong relationship with the community in Fayette County, Ohio."

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 joint venture between LG Energy Solution and Honda?

The joint venture will focus on producing lithium-ion batteries for Honda's electric vehicles, enhancing their EV strategy.

What will be the investment amount for the Honda and LG Energy Solution joint venture?

The total investment for the joint venture is projected to reach $4.4 billion.

How many jobs will the joint venture create in Ohio?

The establishment of the joint venture is expected to create approximately 2,200 jobs.

When will the new battery plant start mass production?

Mass production at the new battery plant is expected to begin by the end of 2025.

Where will the new battery production facility be located?

The new facility will be located in Fayette County, Ohio, approximately 40 miles southwest of Columbus.