New LG and Honda JV could mean Ohio jobs
By Terry Troy
Will the new LG Energy Solution (LGES) and Honda Motor Co., joint venture bring a new EV battery manufacturing facility and up to 4,000 jobs to Ohio? While the exact location has not been finalized, there is much speculation that the new plant will be located in Ohio, according to published reports by Reuters and Nikkei Business Daily.
Construction on the new facility, which will bring with it an estimated capital investment of $4.4 billion between the two companies, is expected to begin in early 2023, with full production slated for 2025.
Last week, LG Energy Solution and Honda Motor entered into an agreement to establish the JV to produce lithium-ion batteries to power Honda and Acura EV models for the North American market. The plant aims to have an annual production capacity of approximately 40GWh.
The pouch-type batteries produced at the new JV plant will be supplied exclusively to Honda facilities in North America, including Ohio, where the car maker has production facilities in Marysville, Anna and East Liberty. Honda has a long history of manufacturing in the state with the first U.S.-made Honda Accord rolled off the line in Marysville in 1982.
LGES and Honda made the decision to establish the JV battery plant in the U.S., based on the shared belief that expanding local electric vehicle production and ensuring the timely supply of batteries would put them in the best position to target the rapidly-growing North American EV market.
“Our joint venture with Honda, which has significant brand reputation, is yet another milestone in our mid- to long-term strategy of promoting electrification in the fast-growing North American market,” said Youngsoo Kwon, CEO of LG Energy Solution. “Since our ultimate goal is to earn our valued customers’ trust and respect, we aspire to position ourselves as a leading battery innovator, working with Honda in achieving its core initiatives for electrification, as well as providing sustainable energy solutions to discerning end consumers.”
“Honda is working toward our target to realize carbon neutrality for all products and corporate activities the company is involved in by 2050,” said Toshihiro Mibe, president, CEO and Representative Director of Honda Motor. “Aligned with our longstanding commitment to build products close to the customer, Honda is committed to the local procurement of EV batteries which is a critical component of EVs. This initiative in the U.S. with LGES, the leading global battery manufacturer, will be part of such a Honda approach.”
“Ohio’s advanced manufacturing future is bright,” added Ohio Governor Mike DeWine, in a prepared statement announcing the new JV. “With automakers moving to manufacture more and more electric vehicles, we want Honda to expand its operation in Ohio. For almost 40 years, Ohio has been at the center of Honda’s North American vehicle production, and we are working with Honda and LG to ensure that they choose Ohio for this new electric battery plant.”
“Today’s announcement will have major implications for Ohio and its continued role as a leader in North America’s quickly evolving EV market,” said Ryan Augsburger, president of the Ohio Manufacturers’ Association. “This facility will ensure that Honda has access to domestically manufactured batteries, which bodes well for the future of Ohio’s automobile manufacturing legacy.
“While a specific factory location has not yet been identified, we are certain that Ohio is strongly being considered given Honda’s longstanding presence in the Buckeye State. We are also confident in the DeWine-Husted administration’s commitment and competence to ensure that both companies have the resources they need as they make their decision. Ohio manufacturers are ready to lead this new chapter of innovation.”
