Honda and LG Energy Solutions confirmed this morning that the two companies would open a new joint venture (JV) battery plant in Fayette County, Ohio, about 40 miles southwest of Columbus. according to Drive Tesla Canada.
The companies announced in August that they would open a battery plant stateside, but at that time, they did not have a location.
As per reporting by Reuters, the new joint venture will commit to investing $4.4 billion into the plant and the surrounding area. It is estimated that the new plant will create 2,200 jobs in the region, pending final government approvals.
The joint venture battery plant between Honda and LGES will formally be established in 2022. The two companies plan to begin construction in early 2023, to complete the new production facility by the end of 2024. The plant intends to approximately have a 40GWh of annual production capacity as it will start mass production of pouch-type lithium-ion batteries by the end of 2025.
This investment by Honda in Ohio is said to be a part of a broader investment in North America by the Japanese-based automaker. In addition, Honda is investing $700 million to re-tool existing Honda plants for EV production.
This includes three Ohio engine plants, increasing 300 new jobs to the state in the coming years.
Honda is planning to begin production and sales of Honda EVs in North America in 2026, based on Honda’s new 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.
The plant is still pending regulatory approvals at the state and local level.
However, the company does not foresee any problems getting through the approval stage in the next few months.
“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. The new joint venture battery plant with LGES shows the attainment of this possibility.
“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.”
The latest joint venture announcement with Honda reflects the announced LG Energy Solutions mid- to long-term strategy to focus on North America, which is the fastest growing EV market. LGES plans to expand production capacity in the region, as well as boost its local supply chain for critical minerals.
Furthermore, as part of its goal in achieving carbon-neutral for all products and corporate activities by 2050, Honda has announced a vision to make battery-electric and fuel-cell EVs to represent 100% of its vehicle sales by 2040.