The battery joint venture between LG Energy Solution and Honda is beginning mass production of batteries for energy storage systems (ESS) in the United States. The production is notable for converting a plant originally designed to make electric vehicle (EV) battery cells into an ESS production system to match market shifts.
L-H Battery Company, the joint venture between LG Energy Solution and Honda, said on the 2nd (local time) that it began start of production (SOP) of ESS battery cells at its Jeffersonville plant in Fayette County, Ohio.
The battery cells produced will be supplied to the U.S. power grid, as well as the commercial, industrial, and residential ESS markets, through LG Energy Solution's North America ESS subsidiary, "Vertech."
Depending on market conditions, the joint venture plans to operate its product portfolio flexibly, producing not only ESS but also battery cells for hybrid electric vehicles (HEV).
This mass production is meaningful as it marks the start of LG Energy Solution's North America ESS local manufacturing strategy. By establishing a local supply chain in North America that runs from production to supply, the company can further improve response speed to customers and supply stability.
North America is a region where the ESS market is growing rapidly due to the expansion of AI data centers, the wider adoption of renewable energy, and rising demand for power grid stabilization.
Koo Ja-hoon, chief executive of L-H Battery Company, said, "ESS will become a core business pillar along with the production of HEV battery cells," adding, "I feel proud of the employees who showed a spirit of challenge and flexibility to launch this important product."