LG Energy Solution (LGES) and Honda Motor Co., Ltd. (Honda) announced a formal establishment of the joint venture (JV) which will produce lithium-ion batteries for electric vehicles produced by Honda. The companies’ overall investment related to the JV is projected to reach $4.4 billion.

Honda says the new plant will be located approximately 40 miles southwest of Columbus in Fayette County, near Jeffersonville. LGES and Honda have committed to investing $3.5 billion and creating 2,200 jobs to establish the new production facility.

The JV will begin construction of a new battery plant early this year with the goal of completion by the end of 2024 and starting mass production of advanced lithium-ion battery cells by the end of 2025, according to Honda. The plant aims to have an annual production capacity of approximately 40GWh. All batteries produced by the new JV will be supplied exclusively to Honda plants in North America to power battery-electric vehicles sold in North America, the company says.

“LG Energy Solution has all the right assets to make this joint venture a success, including the financial stability, quality, competitiveness, and production capacity with global operational expertise,” said Robert H. Lee, CEO of L-H Battery Company, Inc. “With two companies’ expertise combined, we will provide top quality batteries to ensure the successful launch of Honda EVs in North America, and grow with the community here in Ohio by creating high value jobs.”