LG Energy Solution and Honda recently held the official groundbreaking ceremony for their EV battery joint venture factory, which will be built in Fayette County, near Jeffersonville, Ohio.
The two partners announced the intention to build a 40-gigawatt-hour (GWh) battery plant in August 2022, while the location was confirmed in October. In January, the joint venture was formally established, with a plan to complete the construction before the end of 2024 and start mass production of lithium-ion pouch cells by the end of 2025.
It seems that the $3.5 billion investment (the overall spending will be $4.4 billion) is progressing step by step, without any disruption.
In the latest press release, the two partners showed renderings of how the factory might look:
With 40 GWh/year, Honda (and Acura) should be able to produce up to 400,000 electric vehicles – assuming 100 kilowatt-hours per battery pack. That’s a pretty substantial volume.
The Japanese manufacturer repeated that the batteries from Ohio will be exclusively used in its electric vehicles in North America. To prepare for all-electric car production, Honda will invest also $700 million in its factories in Ohio.
“Honda also has announced 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.”
As we understand, the joint venture will provide batteries for the Honda/Acura next-generation EVs based on the company’s own solution/platform called “e:Architecture,” which will arrive in 2026.
Meanwhile, Honda/Acura is expected to launch two BEVs based on the General Motors’ Ultium platform (currently also powered by LG Energy Solution’s batteries). Let’s recall that the first Honda Prologue electric model (and Acura electric model) will be launched in 2024, with an initial annual sales target is 70,000 units.
Honda and LG Energy Solution EV battery JV:
- type: joint venture
- name: L-H Battery Company, Inc. (tentative name)
- investment: $3.5 billion plant
“The companies’ overall investment related to the JV is projected to reach $4.4 billion” - location: Fayette County, near Jeffersonville, Ohio
- battery type: lithium-ion pouch-type batteries
- volume: up to 40 GWh annually
- use: Honda and Acura models for the North American market
- construction start (plan): early 2023 and completion by the end of 2024
- mass production start (plan): by the end of 2025
- facility: over 2 million sq. ft. in size
- jobs: about 2,200
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