Japanese automotive giant Honda has announced it will form a joint venture with South Korean battery company LG Energy Solution to produce lithium-ion EV batteries.
The new joint venture (JV) between Honda and LG will produce EV batteries for use in Honda electric vehicles and will begin construction of a new battery plant in Columbus, Ohio, early this year.
Honda and LG Energy Solution (LGES) are aiming for their facility to ramp up to annual production capacity of around 40GWh. All batteries produced will be supplied exclusively to Honda plants in North America for EVs sold in the same region.
Current plans expects completion of construction by the end of 2024 and the beginning of mass production by the end of 2025.
L-H Battery Company, the tentative name given to the new JV, will start out life with $US210 million in capital, and will be 51% owned by LGES and 49% by Honda.
“LG Energy Solution has all the right assets to make this joint venture a success, including the financial stability, quality, competitiveness, and production capacity with global operational expertise,” said Robert H. Lee, executive vice president for LGES and planned CEO of the new JV.
“With two companies’ expertise combined, we will provide top quality batteries to ensure the successful launch of Honda EVs in North America and grow with the community here in Ohio by creating high value jobs.”
“The formal establishment of this joint venture between LG Energy Solution and Honda to produce EV batteries in Ohio is another major step toward our electrified future,” said Rick Riggle, a former Honda plant manager and new L-H Battery Company COO.
“We are excited to move forward with such a strong partner in LG Energy Solution and, together, we look forward to establishing a strong relationship with the community in Fayette County, Ohio.”
Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.