Honda Motor and LG Energy Solution on Tuesday said a new multibillion-dollar plant to produce batteries for electric vehicles will be located in Ohio.
Construction of the new facility – located about 40 miles southwest of Columbus – is expected to begin in early 2023, followed by mass production of lithium-ion batteries by the end of 2025.
The battery plant is expected to cost $3.5 billion, with overall investment by the unnamed joint venture eventually reaching $4.4 billion, the companies said.
Honda and LGES announced plans for the joint venture and battery plant last year, but had not revealed a location. The facility is expected to employ about 2,200 people, the companies said.
In addition to the new battery plant, Honda on Tuesday said it plans to invest $700 million to retool several of its existing auto and powertrain plants for production of EVs. The Japanese automaker expects to begin production and sales of EVs in North America in 2026.
The announcements are part of several recent multibillion-dollar investments in U.S. production of EVs and batteries amid tightening emissions regulations and legislation to encourage domestic manufacturing.
Automakers are facing stricter sourcing guidelines that are part of the United States-Mexico-Canada Agreement (formerly the North American Free Trade Agreement) and, more recently, the Inflation Reduction Act. Both policies increased requirements for domestically sourced vehicle parts and materials in order to avoid tariffs or qualify for financial incentives.
Honda has plans to phase out traditional internal combustion engines and exclusively offer battery-electric and fuel cell electric vehicles by 2040 in North America. It’s part of the company’s plans to achieve carbon neutrality by 2050.
LGES – a spinoff from LG Chem – has also announced joint ventures with General Motors, Hyundai Motor and Jeep maker Stellantis.
By CNBC