L-H Battery Company, the US joint venture formed by LG Energy Solution and Honda, has officially launched large‑scale production of energy storage system (ESS) battery cells at its Jeffersonville facility in Fayette County, Ohio.
The company confirmed that mass manufacturing of lithium‑ion ESS cells began on Tuesday, marking a major shift in the plant’s purpose.
Originally constructed to supply electric vehicle battery cells for Honda’s planned EV line‑up, the factory’s direction changed after the removal of the federal EV purchase subsidy—previously worth up to $7,500—under President Donald Trump. With US electric vehicle sales falling sharply, Honda announced in March that it would abandon plans to produce three EV models domestically. As a result, L-H Battery Company redirected its production strategy, converting the site to focus on ESS technology.
The newly manufactured cells will be supplied across the United States for power grid applications, commercial and industrial systems, and residential storage solutions through Vertech, LG Energy Solution’s North American ESS system integration business.
Demand for ESS in the US is accelerating, driven by rapid growth in artificial intelligence data centres, wider adoption of renewable energy, and increasing requirements for grid stability. BloombergNEF forecasts the US ESS market will reach 485GWh by 2030 and rise to 976GWh by 2035.
Koo Ja‑hoon, CEO of L-H Battery Company, described ESS as a “core business pillar” for the venture. COO Rick Riegle added that the start of mass production represents “a stable production base for our North American business” and praised the company’s progress since its establishment in 2023.
Image: Exterior view of the L-H Battery Company’s Jeffersonville plant in Ohio, U.S. Credit: LG Energy Solution
