Distributed Energy Resources, Industrial - October 19, 2022
Honda Makes EV Investments in Ohio
Honda announced two major investments in Ohio, including $700 million to re-tool several of its existing auto and powertrain plants for production of EVs and $3.5 billion with LG Energy Solution (LGES) to establish a previously announced joint venture facility to produce the battery modules to power them, pending final government approvals.
The JV battery plant will be located in Ohio's Fayette County, about 40 miles southwest of Columbus.
The announcement will transform Honda's Marysville Auto Plant (MAP), East Liberty Auto Plant (ELP) and Anna Engine Plant (AEP) for the electrified future and plans to begin production and sales of Honda EVs in North America in 2026, based on its new Honda e:Architecture.
The $700 million re-tooling will enable AEP associates to produce the battery case, to be combined with the battery modules from the JV plant on a sub-assembly line at MAP, with the complete battery unit then installed in EVs built by associates at both MAP and ELP.
These Honda facilities, along with the new EV battery plant, will serve as a new EV hub in Ohio and play a key role in developing the company's knowledge and expertise in EV production that will be shared across Honda's North American auto production network in the coming years
As part of its goal to achieve carbon neutrality for all products and corporate activities by 2050, Honda announced a vision to make battery-electric and fuel-cell electric vehicles represent 100% of its vehicle sales by 2040 in North America.
"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," said Bob Nelson, executive vice president of American Honda Motor Co., Inc. in a statement. "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 two companies plan to begin construction in Fayette County in early 2023, in order 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.
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