Honda is constructing a $4.4 billion electric vehicle battery facility to Ohio
Honda initially announced plans to construct a $4.4 billion electric vehicle (EV) battery facility with LG Chem in August, and the two firms confirmed today that the building would be located in Fayette County, Ohio. By establishing a US-based EV facility, Honda’s next range of plug-in cars will be eligible for the country’s EV tax incentives.
The factory’s construction will begin early next year, with major manufacturing of EV batteries slated to commence by the end of 2025. According to Honda, the facility will have an annual manufacturing capacity of 40GWh and will employ around 2,200 people.
Honda is also spending $700 million to retool three of its current Ohio-based vehicle facilities for EV manufacturing, in addition to the joint venture with LG Chem. The conversion of Honda’s Marysville Auto Plant (MAP), East Liberty Auto Plant (ELP), and Anna Engine Plant (AEP) into EV manufacturing centers would generate 300 employment.
President Joe Biden signed the Inflation Reduction Act of 2022 in August, which gives $7,500 in tax credits for EVs built in North America. This excludes EVs manufactured outside the area, such as the Hyundai Ionic 5 and Kia EV6, which have sparked criticism from overseas manufacturers.
Honda and its subsidiary Acura are getting a jump start on their aim of manufacturing 30 EVs, hybrids, battery-electric, and fuel-cell cars by 2030 by creating an EV facility in Ohio. Honda’s forthcoming EVs, including the Prologue electric SUV and Acura’s Precision EV concept, have lately been teased. When it is delivered in 2024, the Prologue and an unannounced EV based on the Precision will both employ GM’s Ultium platform.