Honda and LG Energy Solution (LGES) have held a ground breaking ceremony for their new joint venture EV battery plant in Fayette County, near Jeffersonville, Ohio.
The JV company will supply lithium-ion batteries for Honda EVs built in North America.
The two companies have committed to US$3.5bn in the JV with overall investment projected to reach $4.4bn.
The factory is scheduled for completion by the end of 2024, creating 2,200 jobs, with 40GWh of annual capacity.
Renderings of how the completed plant will look have been released.
The plant is expected to start mass production of pouch type lithium ion batteries by the end of 2025.
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The location of the joint venture between Honda and LGES was announced on Oct.11, 2022, and was formally established on Jan. 12, 2023. The plant aims to start mass production of pouch-type lithium-ion batteries by the end of 2025, to be provided exclusively to Honda auto plants to produce EVs to be sold in North America.
Honda plans to invest $700m to retool several existing auto and powertrain plants in Ohio for production of EVs using batteries from the new JV. It will begin production and sales of EVs in North America in 2026, based on the new e:Architecture.