LG Energy, Honda Motor break ground for battery plant in Ohio

Industry

Published: 01 Mar. 2023, 14:58

LG Energy, Honda Motor break ground for battery plant in Ohio

LG Energy Solution President Kim Dong-myung, center, and other officials from LG Energy, Honda Motor and Ohio state government turn a shovel during a groundbreaking ceremony for the construction of an EV battery factory in Ohio on Tuesday. [LG ENERGY SOLUTION]

Ground was broken Tuesday for LG Energy Solution’s $4.4 billion battery plant with Honda Motor in Ohio.

The two companies held a groundbreaking ceremony Tuesday in Jeffersonville, northwestern Ohio, with LG Energy Solution President Kim Dong-myung, Honda Motor President Toshihiro Mibe, and Ohio Gov. Mike DeWine in attendance.

The facility, tentatively named L-H Battery Company, will have 40 gigawatt hours of annual capacity, enough to make 500,000 electric vehicles (EVs). Construction will be completed at the end of 2024, with a goal of starting mass production at the end of 2025.

LG Energy is investing $2.24 billion for a 51 percent stake in the joint venture, with Honda owning the remainder. Robert Lee, who currently serves as the executive vice president at LG Energy, serves as the CEO.

The produced batteries will be supplied exclusively to Honda's Ohio and Alabama manufacturing facilities.

It is the first factory project developed by a Korean battery maker and a Japanese automaker.

"LG Energy is one of best global battery makers that is competitive in price and quality, while Honda is a leading player in the global auto industry," CEO Lee said.

"Using the advantages of two companies, we will be able to build the world's most successful battery facility."

LG Energy Solution runs battery facilities in six countries worldwide, with a total capacity of 200 gigawatt hours.

It aims to increase that to 300 gigawatt hours this year, and will up its investment by 50 percent to achieve the goal.