- New joint venture company to produce battery modules in
Fayette County, Ohio
- EV batteries produced at JV plant to be provided to
Honda plants for EV production
MARYSVILLE, Ohio, Oct. 11,
2022 /PRNewswire/ -- Honda and LG Energy Solution
(LGES; KRX: 373220) today announced that their new joint venture
(JV) battery plant will be located in Fayette County, Ohio, about 40 miles southwest
of Columbus, where the two
companies will commit to investing $3.5
billion and creating 2,200 jobs, pending final government
approvals. The companies' overall investment related to the JV is
projected to reach $4.4 billion.
The joint venture between Honda and LGES will be formally
established in 2022, pending regulatory approvals. The two
companies plan to begin construction in early 2023, in order to
complete the new production facility by the end of 2024. The plant
aims to have approximately 40GWh of annual production capacity as
it starts mass production of pouch-type lithium-ion batteries by
the end of 2025.
Honda already has announced plans to begin production* and sales
of Honda EVs in North America in
2026, based on its new Honda e:Architecture. The EV batteries
produced at the new JV plant will be provided to Honda auto plants
to produce EVs to be sold in North
America.
"In another major step toward electrification, LG Energy
Solution's innovative battery technologies will not only power
Honda's brand-new EV models but support Ohio's green economy. We extend our gratitude
to everyone who played a role in making this happen," said
Dong-Myung Kim, Executive Vice
President of Advanced Automotive Battery Division at LG Energy
Solution. "With our commitment to building the world-best quality
products, together with Honda, we look forward to not only creating
thousands of quality jobs here in Ohio, but growing together with the
community."
In April 2022, Honda Motor Co.,
Ltd. announced that it was exploring the possibility of creating a
joint venture company for battery production in North America, and that the battery plant
would be established near a dedicated EV production line to be
created in North America. The
joint venture with LGES represents the fulfillment of this
strategy.
"Honda is proud of our history in Ohio, where our U.S. manufacturing operations
began more than four decades ago. Now, as we expand Honda's
partnership with Ohio, we are
investing in a workforce that will create the power source for our
future Honda and Acura electric vehicles," said Bob Nelson, executive vice president of American
Honda Motor Co., Inc. "We want to thank the leaders of the state of
Ohio, as well as in Fayette County, Jefferson Township, Jeffersonville, and Washington Court House for welcoming this new
joint venture between Honda and LG Energy Solution and giving us
another Ohio community to call
home."
This latest JV announcement with Honda reflects the recently
announced LG Energy Solution's mid- to long-term strategy to focus
on North America, the fastest
growing EV market. LGES plans to further expand its production
capacity in the region, as well as reinforce its local supply chain
for key critical minerals.
As part of its goal to achieve carbon neutrality for all
products and corporate activities by 2050, Honda announced a vision
to make battery-electric and fuel cell electric vehicles represent
100% of its vehicle sales by 2040.
About LG Energy Solution
LG Energy Solution (KRX: 373220), a split-off from LG Chem, is a
leading global manufacturer of lithium-ion batteries for electric
vehicles, mobility, IT, and energy storage systems. With 30 years
of experience in revolutionary battery technology and extensive
research and development (R&D), the company is the top
battery-related patent holder in the world with over 25,000
patents. Its robust global network, which spans North
America, Europe, Asia, and Australia, includes
battery manufacturing facilities established through joint ventures
with major automakers such as General Motors, Stellantis N.V.,
Hyundai Motor Group, and Honda Motor Co. Ltd. At the forefront of
green business and sustainability, LG Energy Solution aims to
achieve carbon neutral operations by 2050, while embodying the
value of shared growth and promoting diverse and inclusive
corporate culture. To learn more about LG Energy Solution's ideas
and innovations, visit https://www.lgensol.com.
About Honda Motor Co., Ltd.
Honda Motor Co., Ltd. (NYSE: HMC) is responsible for the
development, production and sales of automobiles, motorcycles,
power products and aviation products worldwide. Honda now delivers
over 30 million products annually through its three product lines.
Honda and its partners build products in more than 60 manufacturing
plants in 27 countries, employing about 220,000 associates
globally. On a global basis by 2050, Honda is striving to achieve
carbon neutrality for all products and corporate activities, as
well as zero traffic collision fatalities involving Honda
automobiles and motorcycles.
*using domestic and globally sourced parts
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SOURCE Honda