LG Energy Solution-Honda JV begins production of ESS battery cells

L-H Battery, a joint venture between LG Energy Solution and Honda Motor, has officially commenced mass production of lithium-ion battery cells for energy storage systems (ESS) at its facility in Jeffersonville, Ohio. This operational milestone follows a strategic pivot from the plant's original focus on electric vehicle (EV) batteries to address the surging demand in the North American energy storage market. The facility's output will support a wide range of applications, including power grid, commercial, industrial, and residential storage solutions across the United States.

The L-H Battery plant in Jeffersonville, Ohio, successfully initiated mass production of ESS battery cells on July 2, 2026. These lithium-ion cells are slated for distribution through LG Energy Solution Vertech, the company’s North American system integration subsidiary. The production output is intended to serve a diverse array of sectors, providing critical components for utility-scale power grids as well as commercial, industrial, and residential energy storage applications throughout the U.S. market.

This launch represents a significant shift in production strategy for the joint venture, as the Ohio facility was initially conceived to manufacture battery cells for electric vehicles. LG Energy Solution cited changes in the U.S. regulatory landscape for EVs and the robust growth potential of the energy storage sector as primary drivers for this transition. L-H Battery CEO Koo Cha-hoon emphasized that ESS is now a key future growth business for the company, and alongside hybrid EV battery production, it will serve as one of the firm's core operational pillars.

The move positions L-H Battery to capitalize on aggressive growth forecasts for the North American energy storage sector. According to data from SNE Research, annual battery shipments for the region's ESS market are projected to rise from 88 gigawatt-hours (GWh) in the previous year to 485 GWh by 2030, eventually reaching 976 GWh by 2035. To remain competitive, the joint venture plans to maintain a flexible manufacturing portfolio that can adjust between ESS and hybrid EV battery cells based on evolving market demand and regulatory conditions.