Fayette County battery plant denies report ramp-up is for data centers
L-H Battery, a joint venture in Fayette County, Ohio, has begun mass producing battery cells for energy storage systems, rather than solely for Honda electric vehicles as originally intended. While a Japanese publication reported the cells were for AI data centers, L-H Battery denies this, stating they have multiple uses. The article highlights Ohio's numerous data centers and the potential for on-site battery storage to alleviate grid pressure from such large energy consumers.
L-H Battery, the joint venture between Honda Motor Co. and South Korea's LG Energy Solution, has commenced mass production of battery cells for energy storage systems (ESS) at its $4 billion facility in Jeffersonville, Fayette County, Ohio. This shift comes after Honda halted development of several electric vehicles intended for Ohio production, citing losses due to tariffs and waning demand.
A report by Japanese financial publication Nikkei Asia claimed L-H Battery was specifically producing batteries for "AI data centers," prompting questions about a direct partnership with the rapidly expanding data center industry. However, Caroline Ramsey, a spokesperson for L-H Battery, refuted the report as "just not accurate," clarifying that the battery cells are for a broad range of "stationary power" applications, including grid-scale and commercial uses, and that information about end users is the responsibility of LG Energy Solution, the majority owner. The first cells are slated for use by LG Energy Solution Vertech, its U.S. energy storage division.
The article highlights Ohio's prominence in the data center sector, with 224 facilities statewide, 139 of which are in central Ohio, according to Data Center Map. Experts from the Ohio Consumers' Counsel (OCC), including spokesman JP Blackwood, emphasized the potential for on-site battery storage to reduce strain on the electricity grid, particularly during peak demand, noting that large load users like data centers could benefit from such solutions to lessen reliance on transmission infrastructure.
L-H Battery CEO Chahun Ku affirmed the importance of energy storage systems to the company's future, alongside hybrid-electric vehicle battery production. COO Rick Riggle underscored the economic benefits the plant, which currently employs 1,000 people and expects to reach 2,200 within five years, brings to the local Fayette County community. The company aims to remain flexible with its production as the battery cell market evolves.