It will create 2,200 jobs in Ohio.
Honda has announced a new joint venture with LG Energy to establish a joint battery production venture.
The two companies will join forces to produce lithium-ion batteries for electric vehicles made by Honda, including the cute Honda e, and existing hybrid models such as the Accord Hybrid.
Honda has been spending millions on going electric, including a $700 million investment in Ohio-based manufacturing facilities, and has also teamed up with technology companies such as Sony to develop cutting-edge cars in the US by 2026.
The joint venture will start constructing a new battery plant this year, with completion set for 2024.
The new plant, located approximately 40 miles southwest of Columbus, will start production of advanced lithium-ion battery cells by 2025 and aims to have an annual production capacity of 40 GWh.
Batteries produced at the new plant will be exclusively used to power Honda EVs sold in North America. Honda is going big with the new plant: it is making an initial investment of $3.5 billion, with the total joint venture reaching $4.4 billion.
The new plant will create 2,200 new jobs in the area.
"LG Energy Solution has all the right assets to make this joint venture a success, including the financial stability, quality, competitiveness, and production capacity with global operational expertise," said Robert H. Lee, CEO of LG Energy Solution. "With two companies' expertise combined, we will provide top-quality batteries to ensure the successful launch of Honda EVs in North America and grow with the community here in Ohio by creating high-value jobs."
"The formal establishment of this joint venture between LG Energy Solution and Honda to produce EV batteries in Ohio is another major step toward our electrified future," said Rick Riggle, COO of LG Energy Solution. "We are excited to move forward with such a strong partner in LG Energy Solution, and, together, we look forward to establishing a strong relationship with the community in Fayette County, Ohio."