Honda announced today a series of U.S.-based investments in support of its vehicle electrification goals, including $700 million to re-tool several of its existing auto and powertrain plants for EV production, as well as a $3.5 billion investment through a joint venture with LG Energy Solution (LGES) for a new Ohio-based battery plant.
The new facilities along with the new EV battery plant will serve as an EV hub in Ohio playing a key role in developing the company’s knowledge and expertise in EV production.
Bob Nelson, Executive Vice President of American Honda Motor Co., Inc., said:
“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. 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.”
The announcement follows Honda’s launch last year of aggressive electrification plans for its vehicle fleet, including goals to make battery-electric and fuel cell electric vehicles represent 100% of its vehicle sales by 2040, progressing from sales of 40% by 2030 and 80% by 2035 in all major markets, including North America.
Honda announced the formation of its JV with LGES in August, and said at the time that it was looking to determine a site for a new plant to produce lithium-ion batteries in the U.S. to power Honda and Acura EV models for the North American market.
Pending regulatory approvals, the JV between Honda and LGES will be established in 2022, with the overall investment projected to reach $4.4 billion, and the facility employing over 2,200 associates. The two companies plan to begin construction in Fayette County in early 2023, and to complete the new production facility by the end of 2024. This will enable the start of mass production of battery modules using advanced pouch-type, Li-ion cells by the end of 2025, with an annual production capacity of approximately 40GWh.
“Honda is proud of our history in Ohio, where our U.S. manufacturing operations began more than four decades ago. Now, as we expand Honda’s partnership with Ohio, we are investing in a workforce that will create the power source for our future Honda and Acura electric vehicles.”