Honda, LG to invest $3.5 billion in Ohio EV battery plant

Honda announced two major investments in Ohio. One investment is for $700 million to re-tool several of its existing auto and powertrain plants for production of electric vehicles. The other investment is for $3.5 billion with LG Energy Solution (LGES) to establish a previously announced joint venture facility to produce the battery modules to power electric vehicles, pending final government approvals.

Honda has agreed to work with LGES to create a new joint venture (JV) that will produce battery modules. This new JV will be located in Fayette County, Ohio, and employ 2,200 people. The batteries produced at this facility will be used in Honda's electric vehicles.

The plant will be completed by the end of 2024 and it will have a maximum annual production capacity of 40 GWh. The pouch-type lithium-ion batteries will go into cars based on the Honda e:Architecture that will be sold in North America starting in 2026.

Honda is investing $700 million into upgrading its three Ohio plants. The upgrades will prepare these plants for the production of electric vehicles. As a result of the investment, Anna Engine Plant will produce battery cases that will be combined with battery modules produced at the JV battery plant in new vehicles produced at the automaker's two auto plants.

Honda plans to sell only electric and fuel cell electric vehicles in North America by 2040. This is part of Honda's goal to become fully carbon-neutral by 2040.

Source: Honda