Honda-LG JV Starts ESS Battery Production, Adds HEV Cell Line in Ohio
HMC•L-H Battery Company, a 50:50 joint venture between Honda and LG Energy Solution, has begun mass production of lithium-ion ESS batteries at its Ohio plant. The facility will also produce hybrid EV battery cells as Honda pivots from canceled BEV programs toward ESS and HEV growth.
1. ESS Battery Production Begins
L-H Battery Company has initiated mass production of lithium-ion energy storage system (ESS) batteries at its Jeffersonville, Ohio facility. The move marks the first commercial output from the joint venture established between Honda and LG Energy Solution, targeting grid-scale and residential storage applications.
2. Flexible Hybrid EV Output
Alongside ESS batteries, the Ohio plant will manufacture battery cells for hybrid electric vehicles (HEVs). This dual production capability allows L-H Battery to optimize plant utilization and support Honda's ongoing HEV lineup despite the pause in BEV rollouts.
3. Grid Supply Agreements
L-H Battery has secured supply contracts to integrate ESS cells into the U.S. power grid, covering commercial, industrial and residential projects. Deliveries will be managed through LG Energy Solution Vertech, LGES's North American ESS systems integration arm.
4. Strategic Implications for Honda
The pivot to ESS and HEV cell production follows Honda's cancellation of its North American BEV program and related JPY 2.5 trillion impairment charges. CEO Koo Cha-hoon emphasized ESS as a core growth pillar, aligning the company’s battery strategy with evolving market demand.
