LG Energy Solution-Honda Break Ground on US Battery Joint Venture Plant... Mass Production in 2025

Honda 1st Generation Electric Vehicle Battery Production
5.8 Trillion KRW Investment... Securing Annual 40 GWh Production Capacity

LG Energy Solution and Japanese automaker Honda began construction of their joint battery plant in the United States on the 28th (local time). The plant is scheduled to be completed by the end of 2024, with mass production targeted for the end of 2025.

LG Energy Solution announced on the 1st that it held a groundbreaking ceremony for the battery joint plant near Jeffersonville in Fayette County, Ohio, USA, attended by Kim Dong-myung, President of LG Energy Solution, and Toshihiro Mibe, President of Honda Motor Co. The event was also attended by key executives including Lee Hyuk-jae, CEO of the joint venture and Vice President of LG Energy Solution North America, Rick Riggle, Chief Operating Officer (COO), as well as Ohio Governor Mike DeWine and Lieutenant Governor Jon Husted.

The plant will be constructed on approximately 186,000 square meters with a total investment of $4.4 billion (about 5.8 trillion KRW). The joint plant will have an annual production capacity of 40 GWh of battery cells. It is expected to create 2,200 jobs. Batteries produced at the new plant will be exclusively supplied to Honda’s North American factories.

(From left) John Husted, Lieutenant Governor of Ohio, and spouse; Lee Hyuk-jae, CEO of the joint venture and Vice President of LG Energy Solution; Kim Dong-myung, President of LG Energy Solution; Toshihiro Mibe, President of Honda; Mike DeWine, Governor of Ohio, and spouse

Lee Hyuk-jae, CEO of the joint venture, said, “It is an honor to represent two companies that have written a proud history of success over a long time.”

He added, “LG Energy Solution is a global top battery company with differentiated investment capabilities and proven global mass production and quality competitiveness. Since Honda is a global leader in the automotive industry, leveraging the strengths of both companies will enable us to create the most successful battery plant in the world.”

Rick Riggle, COO of the joint venture, stated, “Based on a partnership involving Honda, LG Energy Solution, and the Ohio community, we will successfully lead this joint plant project.”

LG Energy Solution-Honda joint venture CEO Vice President Lee Hyuk-jae and COO Rick Riggle are unveiling the aerial view of the joint factory.
[Photo by LG Energy Solution]

This joint venture has attracted attention as the first strategic cooperation case between a Korean battery company and a Japanese automaker. LG Energy Solution and Honda agreed last August that expanding electric vehicle production and timely battery supply are the most important factors for targeting the North American market, and decided to jointly build a battery plant in the U.S. Based on close cooperation, the final plant site was announced in October last year, the business combination was reported in November, and the corporation was established in January this year.

Along with this groundbreaking ceremony, both companies plan to actively construct the joint plant to strengthen their dominance in the North American market and secure future competitive leadership.

Kim Dong-myung, Head of LG Energy Solution’s Automotive Battery Division, said in his greeting, “This project is the first and largest business in LG Group’s history in collaboration with Honda. It holds special significance for both companies as it will produce batteries for Honda’s first-generation electric vehicle platform.”

Perspective view of LG Energy Solution-Honda joint venture factory
Photo by LG Energy Solution

LG Energy Solution plans to increase its global production capacity to 300 GWh this year through active expansion of production facilities in North America, Europe, and Asia.

It will also focus on four core tasks: ▲differentiating product competitiveness ▲implementing smart factories ▲establishing supply chain management (SCM) systems ▲preparing for the future. To this end, it aims to increase facility investment by more than 50% compared to last year and boost annual sales by 25-30% or more.