LG Energy Solution announced on Friday that its joint venture with Honda Motor Co. has initiated mass production of lithium-ion battery cells for energy storage systems (ESS) at its Jeffersonville, Ohio, facility. Operated by L-H Battery Co., the plant began ESS cell output on Thursday local time, marking a shift in its production strategy.
Originally designed for electric vehicle battery cell manufacturing, the Ohio site pivoted to focus on ESS cells in response to changes in the U.S. regulatory environment and robust growth projections for the energy storage market. These regulatory adjustments include updated vehicle emissions standards and incentives encouraging electrification, prompting manufacturers to diversify output. LG Energy Solution has also been strengthening local production to minimize supply chain disruptions and manage logistics costs.
The ESS battery cells produced in Ohio will be supplied through LG Energy Solution Vertech, the company’s North American system integration subsidiary. They are destined for deployment in utility-scale grid support, commercial and industrial load management, residential energy storage and backup power applications. By enabling peak demand management and grid resiliency, these systems support the wider integration of renewable energy sources.
L-H Battery Co. plans to maintain manufacturing flexibility by retaining the ability to ramp up production of hybrid electric vehicle cells alongside ESS cell output, depending on market demand. Earlier announcements outlined capacity expansions and equipment upgrades at the facility, reflecting the joint venture’s investment in advanced manufacturing processes.
"Energy storage systems represent one of L-H Battery’s core future growth areas and will, alongside hybrid electric vehicle cell production, form a foundational pillar for the company," said L-H Battery CEO Koo Cha-hoon.
Data from market research firm SNE Research forecasts that North America’s ESS battery shipments will jump from about 88 gigawatt-hours (GWh) in 2023 to 485 GWh by 2030 and further to 976 GWh by 2035, underscoring the sector’s rapid development and long-term potential. The ramp-up also illustrates LG Energy Solution’s strategic responsiveness to market shifts and its commitment to supporting U.S. energy infrastructure development. The joint venture expects this production ramp-up to strengthen America’s domestic battery supply chain and support regional efforts toward energy transition goals.
Source: Yonhap News Agency
