Since Honda introduced its two-motor hybrid-electric system, nearly 60 percent of Accord and CR-V sales in the United States have been attributed to this eco-friendly technology. The introduction of this powertrain represents a bridge between the era of conventional combustion engines that the facility has been manufacturing since 1985 and the forthcoming battery-electric components that the plant will produce in the coming years.
Honda is making substantial investments of $700 million to retool not only the Anna Engine Plant but also the East Liberty Auto Plant and the Marysville Auto Plant. These investments will enable these facilities to manufacture battery-electric vehicles. The Anna Engine Plant will play a crucial role in producing the cases for Honda's Intelligent Power Unit, which will house the battery module and its controlling hardware.
As the largest engine plant in Honda's global network, the Anna facility has made more than just engines over the years. The skilled workforce of 2,900 employees has also been involved in the production of transmissions, suspension components, and wheels. Honda remains committed to sustaining employment levels during the transition to electric vehicles (EVs), highlighting the importance of its workforce in the company's future plans.
To further strengthen its EV initiatives, Honda is establishing a joint venture battery facility in partnership with LG Energy Solutions. Ground has already been broken for this facility, and the combined investment for this endeavor is projected to reach an impressive $4.4 billion. The facility will be responsible for the production of lithium-ion batteries that will power the EVs manufactured at Honda's East Liberty and Marysville factories. In a strategic decision, Honda has accelerated its EV production timeline, shifting it from 2026 to 2025.
In line with these changes, Honda will transfer engine production out of the Anna Engine Plant by August to prepare the facility for the production of battery cases. Additionally, Accord production will be relocated from Marysville to Indiana, consolidating the production lines to pave the way for EV manufacturing.
While Honda acknowledges the potential longevity of combustion engines, with expectations that they could persist beyond 2040, the company is proactively embracing the shift towards EVs and hybrids. Honda aims for EVs and hybrids to account for 40 percent of its sales by 2030, aligning with the direction in which the entire automotive industry is heading.
Source: Honda
