Ohio joint venture produces lithium-ion cells for energy storage

LG Energy Solution to supply US grid, commercial ESS through Vertec

HEV battery cells also under consideration to broaden product portfolio

An aerial view of the LG Energy Solution-Honda joint venture facility in the United States [LG Energy Solution]
An aerial view of the LG Energy Solution-Honda joint venture facility in the United States [LG Energy Solution]

The battery joint venture established in the United States by LG Energy Solution and Honda has begun mass production of battery cells for energy storage systems, pivoting from its original focus on electric vehicle batteries to align with the growing North American ESS market.

L-H Battery Company, the US joint venture between LG Energy Solution and Honda, said Wednesday it had started mass production of lithium-ion battery cells for energy storage systems at its factory in Jeffersonville, Fayette County, Ohio.

Cells produced at the facility will be supplied through Vertec, LG Energy Solution's North American ESS system integration business. Key customers include operators of grid-scale, commercial, industrial and residential energy storage systems across the United States.

The production launch marks a significant step in LG Energy Solution's strategy to localize ESS manufacturing in North America. Across the battery industry, demand for energy storage — particularly for data centers and power grids — is rising rapidly even as policy and demand volatility in the electric vehicle market increases.

L-H Battery Company had originally planned to produce battery cells for electric vehicles, but shifted to ESS production in response to changes in the US regulatory environment for EVs and the broader expansion of the ESS market. The company plans to keep its product lineup flexible, with hybrid electric vehicle battery cells also under consideration depending on market conditions.

The North American ESS market is expanding sharply, driven by the proliferation of AI data centers, growing renewable energy adoption and rising demand for grid stabilization. According to SNE Research and BloombergNEF, the market is projected to grow from 88 gigawatt-hours last year to 485 GWh in 2030 and 976 GWh by 2035.

"ESS is an important future business for L-H Battery Company and, together with HEV battery cell production, will become a core pillar of our operations," said Koo Ja-hoon, CEO of L-H Battery Company.

Rick Riggle, chief operating officer, said the company was proud of what it had achieved in just over four years since its incorporation in 2023. "We are very pleased to have hired new employees, launched mass production and made a meaningful contribution to the local community," he said. "This production launch goes beyond simply starting factory operations — it is highly significant in that we have established a stable manufacturing base for our North American business."


kwater@heraldcorp.com