Honda and LG create a joint venture to produce batteries in the USA

By Redação AutoIndústria | Translated by Jorge Meditsch

A joint venture created this Friday, 1/13, by Honda and LG Energy Solution will build a lithium-ion battery plant in Fayette County, near Jeffersonville, Ohio, to supply with exclusivity the Japanese brand electric vehicle lineup in North America.

The joint investment in the new industrial complex, which will create 2.2 new jobs, is US$ 3.5 billion. The partnership’s projected total investment is US$ 4.4 billion.

According to a Honda press note, the plant construction should be concluded at the end of 2024, and production will begin the following year. The yearly production capacity will be around 40 GWh.

A new company, L-H Battery Company, Inc., was created with the joint venture. Its initial capital is US$ 210 million, 51% owned by LGES and 49% by Honda.

The corporate executives are Robert H. Lee, CEO (current executive vice president and leader of regional groups of LGES North America) and Rick Riggle, COO (previously leader of Honda’s engine plant – Manufacturing and Development in North America).

“LG Energy Solution has all the right actives to make this joint venture a success, including financial stability, quality, competitiveness and production capacity with global operation experience”, asserted Robert H. Lee.

“With the two companies’ joint experience, we will supply high-quality batteries to ensure the well-succeeded launch of Honda’s electric vehicles in North America and to grow with Ohio’s community creating high-value jobs”, said the new CEO.