Honda and LG Energy Solution have broken ground on their joint venture electric vehicle (EV) battery plant in Ohio. The new facility is expected to create 2,200 jobs and cost $3.5 billion, projected to reach $4.4 billion. The plant will cover over 2 million square feet and have an annual production capacity of approximately 40GWh. The lithium-ion batteries produced at the plant will support Honda’s plan to build battery-electric vehicles in North America.
Joint Venture Company
The new Honda and LG Energy joint venture company aims to combine the strengths of both Honda and LG Energy Solution to create the most successful battery plant in the world. The CEO of the new company is Robert H. Lee, and the COO is Rick Riggle. The plant will be located in Fayette County, near Jeffersonville, Ohio, and is expected to be completed by the end of 2024.
Ohio Governor Mike DeWine and Lieutenant Governor Jon Husted, along with members of the state government and local community officials, joined Toshihiro Mibe, President and CEO of Honda Motor Co., Ltd., and Dong-Myung Kim, President and head of the Advanced Automotive Battery Division of LG Energy Solution, at the official groundbreaking ceremony.
Tri-venture with Community
According to Rick Riggle, the communities of Southern Ohio are a part of this venture as well, and he sees it not as a joint venture but as a tri-venture between Honda, LG Energy Solution, and the community. He believes that the shared values and perspectives regarding the relationship they want to have with their new workforce and the spirit of teamwork will be key to their success.
The plant aims to start mass production of pouch-type lithium-ion batteries by the end of 2025, which will be provided exclusively to Honda auto plants to produce EVs to be sold in North America. Honda also 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.
LG Energy Solution’s Initiative
LG Energy Solution has been carrying out its initiative to expedite the global EV transition, with an annual production capacity of 200GWh expected to expand to 300GWh by the end of this year. The company has established the largest global battery manufacturing network and is devoted to providing competitive power solutions for its customers, thereby promoting the customer values and reinforcing the collective initiatives for clean energy transformation.
Honda’s Vision
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. With this new partnership, Honda is making significant strides towards achieving its vision while creating job opportunities and investing in clean energy.
The construction of the new EV battery plant in Ohio marks a significant milestone for Honda and LG Energy Solution’s joint venture. With the annual production capacity of approximately 40GWh, the plant will play a significant role in supporting Honda’s plan to build battery-electric vehicles in North America. Additionally, the new plant will create thousands of job opportunities in the region and make significant strides towards achieving Honda’s goal of carbon neutrality for all products and corporate activities by 2050. The completion of the plant by the end of 2024 is eagerly anticipated, and the impact it will have on the EV industry is significant.
