Construction of the LG Energy Solution (LGES) and Honda's battery joint venture in Ohio progresses according to plan, reaching another milestone.
The two companies marked the first steel beam installed at the site this week, three months after the groundbreaking ceremony in March 2023.
Through a $3.5 billion investment, LGES and Honda intends to build a 40-gigawatt-hour (GWh) battery factory of lithium-ion, pouch-type cells for all-electric cars (Honda and Acura), envisioned for sales in North America.
The construction should be completed by the end of 2024, so the plant would be able to start mass production of batteries by the end of 2025. As we understand, the joint venture will provide batteries for the Honda/Acura next-generation EVs based on the company's own solution/platform called "e:Architecture," which will arrive in 2026.
Bob Lee, CEO of the new LGES-Honda joint venture said:
"There are many beginnings when you form a new company to build a new facility, but today is an important milestone for the LGES-Honda team, for the local community and everyone working at the site to create our new EV battery facility. Construction is on track and we look forward to reaching many more milestones on the way to starting production of EV batteries in 2025."
Before the new plant is ready, Honda and Acura will introduce two BEV models in 2024, using General Motors' Ultium platform (currently also powered by LG Energy Solution's batteries). The initial sales target for the all-electric Honda Prologue is 70,000 units annually.
Honda and LG Energy Solution EV battery JV:
- type: joint venture
- name: L-H Battery Company, Inc. (tentative name)
- investment: $3.5 billion plant
"The companies’ overall investment related to the JV is projected to reach $4.4 billion" - location: Fayette County, near Jeffersonville, Ohio
- battery type: lithium-ion pouch-type batteries
- volume: up to 40 GWh annually
- use: Honda and Acura models for the North American market
- construction start (plan): early 2023 and completion by the end of 2024
- mass production start (plan): by the end of 2025
- facility: over 2 million sq. ft. in size
- jobs: about 2,200
