After almost four years of construction on the LG Energy Solution and Honda Motor Company battery plant, the L-H Battery Company in Fayette County announced Wednesday its production of lithium-ion battery cells.
The plant originally planned to produce electric vehicle batteries to meet demand for the growing industry. However, Honda Motor Company announced in March their decision to stop development of three EV car models in North America after changes in the business environment.
Honda cited unfavorable impacts from U.S. tariff policies on the gasoline and hybrid vehicle business and a decline of competitiveness with products in Asia.
In a written statement, L-H Battery noted the company will remain flexible with its products and production with a possible future producing hybrid-electric vehicle battery cells.
But for now, the first battery cells made by the company will be used in grid-scale and technology applications, such as residential homes, commercial and industrial operations and large-scale utility grids.
The energy storage systems catch and store electricity from the broader power grid with traditional energy sources like oil and gas, as well as on-site renewable sources like wind and solar. Storing grid-scale electricity eases the burden of the electrical grid to make it more reliable and resilient.
The joint venture of LG Energy and Honda totals more than $4.4 billion, with the plant employing more than 1,000 workers. At full capacity, the 2 million-square-feet facility will roughly employ a workforce of 2,200 people.
“Nearly four years after the establishment of L-H Battery, it is gratifying to see the progress we've made together, from completing construction to establishing an entirely new workforce, and delivering meaningful economic benefits for the local Fayette County community,” said Rick Riggle, chief operating officer at L-H Battery.
