LG and Honda formalise joint battery venture for North American supply

Honda and LG have formalised their joint battery venture, which was first announced in August 2022, with a view to build a brand new North American facility to provide EV batteries for Honda’s production there. 

The venture will build a new factory in Jeffersonville, outside Colombus, Ohio. Between the two companies LG Energy Solutions and Honda will invest $3.5 billion, with a projected total investment eventually reaching $4.4 billion. 2,200 jobs are expected to be created by the plant, double the number of the Ultium battery plant in Lordstown, Ohio. 

Ultium itself is a joint venture between GM and LG which recently received a $2.5 billion loan from the U.S. Department of Energy to accelerate the development of plants in Michigan, Ohio and Tennessee. LG also has a third joint venture in the United States, formed in October 2021 with Stellantis, to create EV batteries in Ontario, Canada.

The joint venture between LG and Honda has been given the working name of L-H Battery Company and an announcement today confirmed it would start off with $210 million capital. Honda has a narrow majority stake in ownership, at 51 percent to LG’s 49 percent. 

Also announced today was the appointment of two executive officers. Robert H Lee will be the new venture’s CEO, as well as currently being the executive vice president, North America regional group leader at LG. He said ”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. 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.”

From Honda’s side, Rick Riggle will become the chief operating officer of the new company. He comes into the role from previously being the plant lead at the Anna engine plant for Honda Development and Manufacturing of America. 

“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 Riggle. “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.”