South Korean electric vehicle (EV) battery maker LG Energy Solution (LGES) said its U.S. joint venture to manufacture battery cells with Honda motor has been officially formed.
The company, called LH Battery Company, is based in Jeffersonville, Ohio and has an initial paid-up capital of US$210 million. LGES owns 51% of the equity and Honda 49%.
Construction of a new facility 40 miles southwest of Columbus will begin in early 2023. It will have an initial production capacity of 40 gigawatt hours (GWh) per year upon completion in late 2024 to produce lithium-ion batteries exclusively for Honda EVs manufactured in North America.
The company said battery cell production will begin by the end of 2025.
The two partners have committed to a combined investment of US$3.5 billion in the plant, which is expected to create 2,200 jobs, with total investment in the joint venture expected to reach US$4.4 billion.
Robert Lee, CEO of LH Battery Company, said in a statement, “LGES has all the right assets to make this joint venture a success, including the financial stability, quality, competitiveness and manufacturing capacity with global operational expertise. With the combined know-how of the two companies, we will offer batteries of the highest quality.”
Lee Hyuk-jae, vice president of LGES and head of the company’s North American unit, has been appointed CEO of LH Battery Company. Rick Riggle, director of Honda’s Anna Engine Plant in Ohio, will become the plant’s Chief Operating Officer (COO).
LGES has expanded aggressively in recent years, particularly in North America, where it is building a network of EV battery plants independently and also through joint ventures with automakers such as General Motors, Stellantis and Hyundai.