Total investment of $4.4 billion, 40GWh scale
Mass production of pouch battery cells and modules starting at the end of 2025

The battery plant site worth $4.4 billion announced by LG Energy Solution (hereinafter LG Enersol) and Honda in August has been confirmed to be located in Ohio.

Reuters and other media reported on the 11th that the joint venture between LG Enersol and Honda will construct an electric vehicle battery plant in Fayette County, Ohio, accelerating the pace of electric vehicle competition.

The joint venture initially planned to invest $3.5 billion, but total investment is expected to reach $4.4 billion.

Honda plans to begin EV production and sales in North America in 2026 based on the new Honda e:Architecture.

To achieve this, the joint venture will begin construction of the Ohio plant in early 2023, complete it by the end of 2024, and begin mass production of pouch battery cells and modules at the end of 2025 with an annual production target of approximately 40GWh.

Additionally, Honda announced that it will invest an additional $700 million to retrofit and refurbish three Ohio plants to accelerate electric vehicle production and create 300 new jobs.

Batteries produced at this facility are planned to be supplied to electric vehicles assembled in North America, including standard Honda electric vehicles and two models from the premium brand Acura.

The U.S. Inflation Reduction Act (IRA) stipulates that subsidies are provided only for electric vehicles manufactured in North America.

U.S. President Biden wants 50% of all new vehicles assembled by 2030 to be electric vehicles or plug-in hybrid vehicles.

According to AlixPartners, automotive manufacturers and suppliers have announced investments exceeding $38 billion through 2026 to increase battery production in the U.S.

This figure is expected to increase as the industry leverages the $40 billion in tax credits included in the Inflation Reduction Act aimed at accelerating electric vehicle production.

Last month, Ford invested $5.6 billion in the BlueOval City complex in Tennessee and plans to begin construction of battery plants for future Ford and Lincoln electric vehicles in 2025, including the F-150 Lightning and a second battery-electric pickup truck.

Toyota plans to invest $3.8 billion to build a battery plant for hybrid and electric vehicles in North Carolina.

Panasonic, which supplies products to Tesla and other automakers, has decided to construct a $4 billion battery plant in Kansas and is reportedly in negotiations to build an additional $4 billion plant in Oklahoma.