Honda has announced plans to build a new battery plant in Ohio as it joins other companies in the race for EV battery production.
Key Details
- Honda announced on Tuesday that it would be investing in a new electric vehicle (EV) battery plant in partnership with LG Energy Solutions. The new facility will be in Fayette County, Ohio.
- Together, the companies will be investing around $3.5 billion. When completed, the plant will provide 2,200 new jobs to the area. Overall investments are projected to reach $4.4 billion.
- Construction is expected to begin in 2023 and reach full production capability by 2025.
Why it’s news
The new EV plant is the latest step in Honda’s goals to reach carbon neutrality by 2050. As a part of this goal, Honda plans to exclusively sell EVs by 2040.
Honda’s goal, however, is unreachable without more battery supply. The new facility will alleviate that problem.
The plant will produce approximately 40 gigawatt hours worth of EV batteries yearly—nearly enough to power 500,000 EVs a year, Barron’s reports.
The car manufacturer already has a history of working in Ohio. Honda executive Dong-Myung Kim says the move will boost the state’s green economy.
“In another major step toward electrification, LG Energy Solution’s innovative battery technologies will not only power Honda’s brand-new EV models but support Ohio’s green economy. We extend our gratitude to everyone who played a role in making this happen. With our commitment to building the world-best quality products, together with Honda, we look forward to not only creating thousands of quality jobs here in Ohio, but growing together with the community,” Dong-Myung says.
Backing up a bit
Honda isn’t the only company ramping up EV battery production. Toyota announced a $3.8 billion investment into a facility in North Carolina.
The investment brought Totyota’s total global investment into EV batteries to $5.6 billion. The company has plans for carbon neutrality by 2035.
Toyota’s plant will begin production on hybrid and all electric vehicles by 2025.
EV parts manufacturers are also setting up shop further north in Michigan. In an effort to draw more automotive careers to the state, Michigan Governor Gretchen Whitmer awarded incentives to two new battery projects in the state.
The first is a cell factory called Our Next Energy founded by Mujeeb Ijaz. The $1.6-billion factory in southeast Michigan will manufacture lithium-iron phosphate batteries and is expected to hire more than 2,000 people.
Our Next Energy has received a $200 million grant.
The second manufacturer is a Chinese company Gotion High-Tech that is building a $2.4 billion plant in Big Rapids to produce battery anodes and cathodes. The plant will employ more than 2,000 people.
Michigan awarded the company a $175 million grant and a zoning designation valued around $540 million.
As the demand for electric vehicles (EVs) increases, more battery manufacturers will set up shop. States are scrambling to attract plants in order to create more jobs within the state.
Governor Gretchen Whitmer has been wooing companies to the state in order to create more jobs. Her incentive fund to lure companies with big projects has nearly $2 billion.
