LG Energy Solution-Honda JV begins production of ESS battery cells
This image shows a car battery plant under construction in Ohio to be completed next year under a joint venture between LG Energy Solution and Honda Motor. Courtesy of LG Energy Solution
Korea's LG Energy Solution Ltd. said Friday that its joint venture with Honda Motor has begun mass production of lithium-ion battery cells for energy storage systems (ESS) in the United States.
The battery plant in Jeffersonville, Ohio, operated by the joint venture L-H Battery, began producing ESS battery cells on Thursday (U.S. local time), the company said.
The battery cells will be supplied through LG Energy Solution Vertech, the company's North American ESS system integration subsidiary, for use in power grid, commercial, industrial and residential ESS applications across the U.S.
The plant was originally designed to manufacture battery cells for electric vehicles (EVs).
However, LG Energy Solution shifted its production strategy to focus on ESS batteries in response to changes in the U.S. regulatory environment for EVs and the strong growth prospects of the energy storage market.
L-H Battery said it plans to maintain a flexible production portfolio by manufacturing battery cells for hybrid EVs, as well as ESS, depending on market demand.
The start of mass production marks a significant milestone in the Korean firm's strategy to expand its local manufacturing footprint in North America's rapidly growing ESS market, the company said.
"ESS is one of L-H Battery's key future growth businesses and, together with hybrid EV battery cell production, will become one of the company's core business pillars," L-H Battery Chief Executive Officer (CEO) Koo Cha-hoon said.
According to market research firm SNE Research, North America's ESS battery market is expected to expand sharply, with annual battery shipments projected to increase from 88 gigawatt-hours (GWh) last year to 485 GWh by 2030 and 976 GWh by 2035.