Honda and LG Energy Solution begin US ESS battery production

A joint venture between Honda Motor and LG Energy Solution has begun mass-producing lithium-ion battery cells for energy storage systems in the United States. Production started on Thursday, July 2, at the LH Battery plant in Jeffersonville, Ohio, according to an announcement from LG Energy Solution.

The move marks a significant strategic pivot for the facility, which was originally designed and built to supply batteries for Honda’s electric vehicles. In March, Honda canceled the development and launch of three EVs planned for North America, a decision the company attributed to reassessing market conditions and weaker-than-expected U.S. EV demand. The restructuring resulted in expenses and losses estimated at up to 2.5 trillion yen, or approximately $15.7 billion to $16 billion.

Faced with this available production capacity, the partners shifted their focus to the rapidly growing energy storage market. The battery cells will now be supplied through LG Energy Solution Vertech for use in power grid, commercial, industrial, and residential energy storage applications across the U.S. LH Battery stated it plans to maintain a flexible production portfolio, also manufacturing cells for...