JEFFERSONVILLE, Ohio — L-H Battery Company, the joint venture between LG Energy Solution and Honda, announced on July 3 that it has commenced the mass production of lithium-ion battery cells for Energy Storage Systems (ESS) at its manufacturing plant in Jeffersonville, Fayette County, Ohio.

The produced battery cells will be supplied for use in the U.S. power grid, as well as for commercial, industrial, and residential ESS projects through LG Energy Solution Vertech, the company’s North American system integration business.

Although the facility was initially planned for electric vehicle (EV) battery production, the joint venture pivoted its strategy to focus on the high-growth ESS market in response to shifting regulatory environments and evolving EV market trends. Looking ahead, L-H Battery Company stated that it intends to maintain a flexible operational strategy, with plans to expand its product portfolio to include battery cells for hybrid electric vehicles (HEV) depending on future market demand.

This milestone marks a significant step in LG Energy Solution’s strategy to solidify a localized production base for the rapidly expanding North American ESS market. Driven by the proliferation of AI data centers, the transition to renewable energy, and the growing need for grid stabilization, the North American ESS market is projected to surge significantly, with estimates from firms like SNE Research and BNEF forecasting growth from 88 GWh in 2025 to 976 GWh by 2035.

"ESS represents a crucial future business for L-H Battery Company and will serve as a core pillar alongside our HEV battery production," said Koo Ja-hoon, CEO of L-H Battery Company.

Rick Riggle, Chief Operating Officer (COO), added, "Since establishing the company in 2023, we have successfully recruited a new workforce and achieved the start of mass production. This is more than just starting a factory; it signifies the establishment of a stable production foundation for our operations in North America."