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Honda, LG Energy Solution Joint Venture Approved for State Tax Credit

Joint Venture to Bring New EV Production with Honda also retooling its current Ohio facilities

Mon Oct 31 2022

Company Name: Honda Motor Company, Ltd.; LG Energy Solution

Location: Jeffersonville

Site Region: Western, Central

Country of Origin:

  • Country: Japan and South Korea
  • Region: Asia

Industry Sector: Automotive

Company Profiles:

Honda Motor Co., Ltd. is responsible for developing, producing, and selling automobiles, motorcycles, power products, and aviation products worldwide. Honda now delivers over 30 million products annually through its three product lines. Honda and its partners build products in more than 60 manufacturing plants in 27 countries, employing about 220,000 associates globally. On a global basis, by 2050, Honda is striving to achieve carbon neutrality for all products and corporate activities, as well as zero traffic collision fatalities involving Honda automobiles and motorcycles.

LG Energy Solution, a split-off from LG Chem, is a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. With 30 years of experience in revolutionary battery technology and extensive research and development (R&D), the company is the top battery-related patent holder in the world, with over 25,000 patents. Its robust global network, which spans North America, Europe, Asia, and Australia, includes battery manufacturing facilities established through joint ventures with major automakers such as General Motors, Stellantis N.V., Hyundai Motor Group, and Honda Motor Co. Ltd.

Company Website:

Honda Motor Company: https://www.honda.co.jp

LG Energy Solution: https://www.lgensol.com

Project Summary:

Type of Project: New Location and Expansion

Jobs:

  • Jobs committed: 2,527
  • Jobs retained: 8,023
  • Types of jobs: Manufacturing

Capital Investment: $4.21 billion

Timetable: Construction on the Fayette County battery plant is expected to begin in early 2023, with a goal of starting mass production of advanced lithium-ion battery modules by 2025. 

Company Need:

Honda and LG Energy Solution (LGES) announced their decision to establish a new joint venture company to produce lithium-ion batteries in the U.S. to power Honda and Acura EV models. The pouch-type batteries produced at the new plant would be supplied to Honda facilities.

The company sought to establish a manufacturing facility of approximately 2.5-3.0MSF on a 450-acre greenfield site. Preference was given to the location that could provide sufficient utilities and entitlements on an expedited basis, would require the most effective and timely investment, would meet the desired workforce scalability, subsequent sustainability, and perform most efficiently relative to one-time and recurring costs.

Honda and LGES selected Fayette County, Ohio, for the location of their new EV battery plant.

Honda also needed to prepare for future EV production. As part of the project, Honda announced the retooling of existing Honda plants in Union, Logan, and Shelby counties for electric vehicle production.

Testimonial:

“Honda is proud of our history in Ohio, where our U.S. manufacturing operations began more than four decades ago. Now, as we expand Honda’s partnership with Ohio, we are investing in a workforce that will create the power source for our future Honda and Acura electric vehicles. We want to thank the leaders of the state of Ohio, as well as in Fayette County, Jefferson Township, Jeffersonville, and Washington Court House, for welcoming this new joint venture between Honda and LG Energy Solution and giving us another Ohio community to call home.”

Bob Nelson, executive vice president of American Honda Motor Co., Inc.

“In another major step toward electrification, LG Energy Solution’s innovative battery technologies will not only power Honda’s brand-new EV models but support Ohio’s green economy. We extend our gratitude to everyone who played a role in making this happen. With our commitment to building the world-best quality products, together with Honda, we look forward to not only creating thousands of quality jobs here in Ohio but growing together with the community.”

Dong-Myung Kim, Executive Vice President of Advanced Automotive Battery Division at LG Energy Solution

Why Ohio?

Ohio’s commitment to innovation makes it a natural fit for the thriving electric vehicle supply chain and electric vehicle manufacturing opportunities. Ohio’s vast history in the automotive industry and automotive supply chain, as well as its overall proximity to resources, manufacturers, and end markets, put the state in a prime position for future electric vehicle production. 

Honda has a legacy of choosing Ohio for trailblazing initiatives. In addition to choosing Ohio for its motorcycle plant on October 11, 1977, the Marysville Auto Plant produced the very first Honda Accord on November 1, 1982, and the Anna Engine Plant, which opened in 1985, now produces more than 1 million four-cylinder, V-6, and turbo engines for Honda auto plants throughout North America. The East Liberty Auto Plant opened in 1989 and has manufactured over 4.5 million Honda and Acura vehicles since its inception. In 1992, Honda opened a major product development center in Raymond, Ohio, that now creates many of the vehicles built in Ohio.

Collaborators:

JobsOhio, Ohio Department of Development, Dayton Development Coalition, OneColumbus, Fayette County, Jefferson Township, Jeffersonville, Washington Court House, Miami Trace Local Schools, Union County, Logan County, Shelby County

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