LG Energy Solution (LGES, KRX: 373220) and Honda Motor have joint ventures to produce lithium-ion batteries for Honda’s electric vehicles (EVs).
The companies will invest $3.5 billion to build a new battery plant in Fayette County, Ohio, with an annual production capacity of 40 GWh.
Mass production of advanced lithium-ion battery cells is expected to begin by the end of 2025 and will be supplied exclusively to Honda plants in North America.
The joint venture, tentatively named L-H Battery Company, will have $210 million in capital, with LGES owning 51% and Honda 49% of the company.
Robert H. Lee, executive vice president and North American regional group leader of LGES, will serve as CEO.
Rick Riggle, previously plant manager of Honda Development and Manufacturing of America’s Anna engine plant, will be COO.
In a statement, Robert H. Lee said, “LG Energy Solution has all the right assets to make this joint venture a success, including financial stability, quality, competitiveness, and manufacturing capacity with global operational expertise.”
Rick Riggle added, “The formal establishment of this joint venture between LG Energy Solution and Honda to produce EV batteries in Ohio is another important step toward our electrified future.”
The new plant is expected to create 2,200 jobs, essential to Honda’s goal of electrifying its fleet in North America.
The total investment in the project is expected to be $4.4 billion.