Today, Honda announced a $700-million investment to re-tool its existing automotive and powertrain plants to produce EVs in the state of Ohio. In addition, the Japanese automaker and LG Energy Solution have committed $3.5 billion to build a joint venture battery plant in Fayette County, Ohio. Combined, these major investments will form a new EV hub in Ohio as Honda aims to only sell battery electric and fuel cell electric vehicles in North America by 2040.
The $700-million investment will be spread across Honda’s Marysville Auto Plant, East Liberty Auto Plant, and Anna Engine Plant so that they’re setup for EV manufacturing. The move will create over 300 new jobs and Honda said it is set to begin production and sales of Honda EVs, based on the new Honda e:Architecture, in North America in 2026.
As for the joint venture battery production facility between Honda and LGES, it will be home to 2,200 employees who will produce the pouch-type batteries that Honda will use in its EVs. The new facility is scheduled to begin construction in early 2023 with the goal of finishing by the end of 2024. If all goes as planned, battery production will begin by the end of 2025, with the goal of producing approximately 40GWh annually.
Today is actually the 45th anniversary of Honda’s original announcement of its first production facility in Ohio. Now, Honda is focused on building an electrified future in North America with both vehicle and battery production in the U.S. Last year, Honda produced and sold over 100,000 electrified vehicles in the U.S., which was a record for the automaker. Currently, Honda’s lineup of electrified vehicles in North America include the Accord Hybrid, CR-V Hybrid, and Insight Hybrid.
“This is a very challenging time for our entire industry, but also a very exciting time as Honda invests in full electric vehicle production in the Buckeye State,” said Bob Nelson, executive vice president of American Honda Motor Co., Inc. “Honda has built hybrid-electric vehicles in Ohio for a number of years, and the experience and expertise of our associates in manufacturing, product development, and purchasing will serve as an important foundation as we transition to the electrified future.”