By Kim Seung-yeon
SEOUL, Jan. 13 (Yonhap) — LG Energy Solution Ltd. (LGES) said Friday its joint U.S. electric vehicle (EV) battery venture with Japan’s Honda Motor Co. has officially set sail, taking a step further in the advance into the American market.
The launch of L-H Battery Co. Inc., the venture’s official name, came about five months after the two companies announced in August the US$4.4 billion venture deal to build an EV battery manufacturing facility in the United States. LGES and Honda will own 51 percent and 49 percent in the venture, respectively.
The plant, to be located in Jeffersonville, Ohio, will have a production capacity of 40 gigawatt hours annually, enough to power about 500,000 high-performance EVs, LGES said.
Lee Hyuk-jae, vice president and head of LGES’ North America unit, will double as the CEO of L-H Battery Co., and Rick Riggle, a plant director at Honda’s Anna engine plant in Ohio, will take the post of chief operating officer.
The plant plans to break ground next month, aiming for the completion of the construction by the end of 2024 and to start mass production from late 2025.
The plant will manufacture pouch battery cells to be supplied for Honda’s premium Acura EV models, LGES said earlier.
LGES, the world’s second-largest battery maker, is pouring in more than 20 trillion won to boost its production capacity in North America. It has formed joint ventures with U.S. General Motors Co. and the Chrysler parent, Stellantis N.V., to produce and supply the EV batteries.
Honda, the sixth-highest selling carmaker in North America, has unveiled a plan to invest 5 trillion yen ($40 billion) for electrification with an aim to sell over 2 million EVs by 2030.
LG Energy Solution CEO Kwon Young-soo (L) poses for a photo with Honda Motor CEO Toshihiro Mibe during the signing ceremony in Seoul on Aug. 29, 2022, for their joint venture to build an electric vehicle plant in the United States, in this photo provided by LGES. (PHOTO NOT FOR SALE) (Yonhap)
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(YONHAP NEWS)