What’s Happening: Honda and LG Energy Solution (LGES) have officially begun construction of their joint venture electric vehicle (EV) battery plant, spanning over 2 million square feet, in Fayette County near Jeffersonville, Ohio. The two companies have committed to investing $3.5 billion in the project, with the overall investment expected to reach $4.4 billion. The plant is scheduled to be completed by the end of 2024, with plans to create 2,200 jobs and a targeted annual production capacity of 40GWh.
Why It Matters: The groundbreaking ceremony marks a significant milestone in Honda’s plan to build battery electric vehicles in North America and its vision to achieve carbon neutrality for all products and corporate activities by 2050. The joint venture with LGES is expected to produce cutting-edge lithium-ion batteries to support Honda’s EV production. Moreover, the project will generate job opportunities and boost the local economy in Ohio.
- Honda and LGES have begun construction of their joint venture EV battery plant in Ohio, with a $3.5 billion investment committed.
- The plant is expected to create 2,200 jobs and achieve an annual production capacity of approximately 40GWh.
- The joint venture will deliver advanced lithium-ion batteries to support Honda’s plan to build battery-electric vehicles in North America.
- Honda also plans to invest $700 million in re-tooling existing Ohio plants for EV production.
- LGES aims to expedite the global EV transition, with its annual production capacity expected to reach 300GWh by the end of this year.
Bottom Line: The groundbreaking ceremony of Honda and LG Energy Solution’s EV battery plant signifies a significant step forward for Honda’s commitment to carbon neutrality and its goal to produce battery-electric vehicles in North America. The investment will also generate job opportunities and boost the local economy in Ohio.