LG Energy Solution stated on Friday that its joint venture with Honda Motor Co. has started volume production of lithium-ion battery cells for energy storage systems (ESS) at the plant in Jeffersonville, Ohio. The facility, operated by L-H Battery Co., turned out its first ESS cells on Thursday local time, signaling a strategic realignment of its manufacturing focus.
The Ohio site was initially conceived for electric vehicle battery cell production but was redirected toward ESS cells in light of shifts in the U.S. regulatory landscape and strong growth forecasts for the energy storage sector. These regulatory developments include revised vehicle emissions standards and electrification incentives, which have led manufacturers to broaden their production mix. LG Energy Solution has also been expanding local output to reduce exposure to supply chain disruptions and keep logistics costs in check.
The ESS battery cells manufactured in Ohio will be delivered through LG Energy Solution Vertech, the company’s North American system integration arm. They are intended for use in utility-scale grid support, commercial and industrial load management, residential storage, and backup power. By facilitating peak demand management and improving grid resilience, these systems help accelerate the integration of renewable energy resources.
L-H Battery Co. aims to preserve manufacturing flexibility, keeping the option to increase production of hybrid electric vehicle cells alongside ESS cells based on market conditions. Earlier plans had outlined capacity expansions and equipment upgrades at the site, reflecting the joint venture’s commitment to advanced production technologies.
“Energy storage systems represent one of L-H Battery’s core future growth areas and, together with hybrid electric vehicle cell production, will serve as a foundational pillar for the company,” said L-H Battery CEO Koo Cha-hoon.
According to data from market research firm SNE Research, ESS battery shipments in North America are projected to surge from approximately 88 gigawatt-hours (GWh) in 2023 to 485 GWh by 2030 and further to 976 GWh by 2035, highlighting the rapid expansion and long-term promise of the sector. The production scale-up also demonstrates LG Energy Solution’s ability to respond strategically to evolving market dynamics and its dedication to strengthening U.S. energy infrastructure. The joint venture expects the output increase to reinforce America’s domestic battery supply chain and support regional efforts to meet energy transition objectives.
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