South Korean battery manufacturer LG Energy Solution (LGES) and Japanese carmaker Honda Motors have started construction of their battery gigafactory in Ohio, US.

Construction of the 40-gigawatt plant is expected to be complete by the end of 2024, with mass production planned to follow in 2025. The plant in Fayette County, near Jeffersonville, will produce pouch-type lithium-ion batteries exclusively for Honda models in North America, Kallanish notes.

The milestone was celebrated by companies’ officials and Ohio’s governor in a groundbreaking ceremony on 28 February. The $3.5 billion investment, which has potential to reach $4.4 billion, is expected to create 2,200 new jobs in the region.

The JV, likely to be called LH-Battery Company Inc, was established in January, following its first announcement in August 2022. The companies say the partnership “will strengthen their dominance in the North American market and secure leadership in future competition.”

Honda is retooling several of its existing auto and powertrain plants in Ohio to produce the EVs to be powered by the JV batteries. First production and sales based on the new Honda e:Architecture are expected in 2026. The carmaker plans to only produce battery-electric and fuel cell electric vehicles by 2040.

LGES is also pushing ahead with its global expansion, enabling production capacity to rise from 200 GWh/year to 300 GWh/y by the end of 2023. The increase will come from plants in North America, Europe and Asia.