LG Energy Solution (LGES) and Honda Motor Co. Ltd. (Honda) announced Friday the formal establishment of the joint venture (JV) that will produce lithium-ion batteries for electric vehicles (EVs) manufactured by Honda.
The JV will begin construction of a new battery plant early this year with the goal of completion by the end of 2024 and begin mass production of advanced lithium-ion battery cells by the end of 2025.
The plant aims to have an annual production capacity of approximately 40 GWh.
All batteries produced by the new JV will be supplied exclusively to Honda plants in North America to power battery electric vehicles sold in North America.
The new plant will be located about 40 miles southwest of Columbus in Fayette County near Jeffersonville.
LGES and Honda have committed to invest $3.5 billion and create 2,200 jobs to establish the new production plant.
According to a statement from both companies, the companies’ overall JV-related investment is expected to reach $4.4 billion.
LG Energy Solution, a spin-off of 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 world’s leading holder of battery-related patents, with more than 25,000 patents.
Its strong global network, spanning 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.
On the other hand, Honda is responsible for the development, production and sale of automobiles, motorcycles, energy products and aviation products worldwide.
Currently, Honda supplies more than 30 million products a year through its three product lines.
Honda and its associates build products in more than 60 manufacturing plants in 27 countries, employing approximately 220,000 associates worldwide.