Honda and LG Energy Start Multi-Billion EV Battery Plant in Fayette County, Ohio
- Honda and LG Energy Solution have announced the construction of a joint venture electric vehicle battery plant in Fayette County, Ohio. The two companies have committed to invest $3.5 billion in the new facility, with an overall investment reaching $4.4 billion. The aim is to reach an annual production capacity of 40 GWh.
What happened?
On April 30th, Honda and LG Energy Solution broke ground on their joint venture electric vehicle battery plant in Fayette County, Ohio. The two companies have committed to invest $3.5 billion in the new facility, with an overall investment reaching $4.4 billion. The facility is planned to be completed by the end of 2024, with the aim for approximately 40 GWh of annual production capacity. Officials such as Toshihiro Mibe, President and CEO of Honda Motor, Dong-Myung Kim, Head of the Advanced Automotive Battery Division of LG Energy Solution, Ohio Governor Mike DeWine and Lieutenant Governor Jon Husted attended the groundbreaking ceremony. (Source: https://www.greencarcongress.com/2021/05/20210504-hondalg.html)
Why does it matter?
This joint venture is an important step for Honda in achieving its goal to make battery-electric and fuel cell electric vehicles represent 100% of its vehicle sales by 2040. It also is part of Honda’s plan to become carbon neutral by 2050. The new facility is planned to start mass production of pouch-type lithium-ion batteries by the end of 2025. It will be provided exclusively to Honda auto plants to produce EVs to be sold in North America. In addition, Honda announced plans to invest $700 million to re-tool several of its existing auto and powertrain plants in Ohio for production of electric vehicles that will utilize the batteries made at the JV facility. (Source: https://www.greencarcongress.com/2021/05/20210504-hondalg.html)
What's next?
LG Energy Solution stated that it plans to expand its current annual production capacity of 200GWh to 300 GWh by year-end in order to expedite the global EV transition. Honda has also announced plans to begin production and sales of Honda EVs in North America in 2026, based on its new Honda e:Architecture. This new facility will be a great addition to the EV market and will help to further the development of electric vehicles in the area.