Honda and LG Energy Solution (LGES) have announced plan to build their JV battery plant with an investment of $3.5bn at Fayette County, Ohio.
The plant will be constructed upon receipt of final government approvals.
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Once operational, the facility is expected to create 2,200 jobs.
The total investment by the companies in the JV is expected to touch $4.4 bn.
In 2022, the two companies formed the joint venture, which is pending regulatory approvals.
The companies expect to commence construction of the facility early next year, with its completion anticipated by the end of 2024.
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By GlobalDataBy the end of 2025, the facility is expected to begin mass production of pouch-type lithium-ion batteries.
It will have an annual production capacity of 40GWh.
LGES executive vice president of advanced automotive battery division Dong-Myung Kim said: “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.
“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.”
American Honda Motor executive vice president Bob Nelson said: “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.
“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.”
In an effort to achieve carbon neutrality for all goods and business operations by 2050, Honda had earlier stated that 100% of its vehicle sales would feature battery-electric and fuel cell electric vehicles by 2040.
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Image: In 2022, Honda and LGES formed the joint venture. Credit: Patrik Houštecký from Pixabay.
