[Edaily Reporter SOYEON KIM ] “L-H Battery Company,” a U.S. joint venture (JV) between LG Energy Solution and Japanese automaker Honda, has begun mass production of battery cells for energy storage systems (ESS).

L-H Battery Company announced on the 3rd that it began mass production of lithium-ion battery cells for ESS on the 2nd (local time) at its recently completed plant in Jeffersonville, Fayette County, Ohio.

The battery cells produced will be supplied to the U.S. power grid and commercial, industrial, and residential ESS systems through Vertech, LG Energy Solution’s North American ESS system integration (SI) subsidiary.

Although the plant was originally planned to produce battery cells for electric vehicles (EVs), it shifted its focus to ESS battery production in response to local demand and policy changes. The company stated that it plans to continue operating its product and production lines flexibly, including the future production of battery cells for hybrid electric vehicles in North America.

LG Energy Solution is implementing a strategy to expand its market share in North America by leveraging the advantages of local ESS production. This marks the full-scale launch of its local production strategy.

The North American ESS market is expected to continue expanding. Market research firm Wood Mackenzie forecasts that new ESS installations in the U.S. will total 317.9 GWh (gigawatt-hours) over the next five years. According to Global Market Insights, the U.S. ESS market was valued at $10.67 billion (approximately 148 trillion won) last year and is expected to reach $1.49 trillion by 2034. The compound annual growth rate (CAGR) from this year through 2034 is projected to be 29.1%.

Koo Ja-hoon, CEO of L-H Battery Company, said, “ESS is a crucial part of L-H Battery’s future, alongside the production of battery cells for hybrid electric vehicle applications.”

Rick Riggle, Chief Operating Officer (COO), said, “In just about four years since its founding, L-H Battery has made significant progress, including completing the factory, building a new workforce, and contributing meaningful economic benefits to the local community.”