In a new joint venture (JV), Honda and LG Energy Solution will locate a new battery plant in Fayette County, OH, about 40 miles southwest of Columbus. The two companies will invest $3.5 billion and create 2,200 jobs, pending final government approvals. Overall investment related to the JV is projected to reach at least $4.2 billion.
The partnership between Honda and LGES will be formally established this year, with plans to begin construction in early 2023 and complete the production facility by the end of 2024. The plant aims to have approximately 40GWh of annual production capacity as it starts mass production of pouch-type lithium-ion batteries by the end of 2025.
Honda already has announced plans to begin production¹ and sales of Honda EVs in North America in 2026, based on its new Honda e:Architecture. The EV batteries produced at the new JV plant will be provided to Honda auto plants to produce EVs to be sold in North America.
“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,” said Dong-Myung Kim, Executive Vice President of Advanced Automotive Battery Division at LG Energy Solution. “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.”
“Honda is proud of our history in Ohio, where our U.S. manufacturing operations began more than four decades ago. Now, as we expand Honda’s partnership with Ohio, we are investing in a workforce that will create the power source for our future Honda and Acura electric vehicles,” said Bob Nelson, executive vice president of American Honda Motor Co., Inc. “We want to thank the leaders of the state of Ohio, as well as in Fayette County, Jefferson Township, Jeffersonville, and Washington Court House for welcoming this new joint venture between Honda and LG Energy Solution and giving us another Ohio community to call home.”
In a related project, Honda will invest a total of $700 million to retool its Marysville Auto Plant in Union County, Anna Engine Plant in Shelby County, and East Liberty Auto Plant in Logan County, creating 327 new jobs. Once transformed for EV production, the power source for the vehicles made at the Marysville, Anna, and East Liberty factories will come from the new battery plant in Fayette County.
Honda’s renewed commitment to Ohio comes exactly 45 years to the day after Honda leadership visited the Ohio Statehouse in 1977 to announce plans for its first vehicle production facility in the U.S., the Marysville Motorcycle Plant.
“It has been more than four decades since Honda first saw great promise in Ohio, and although the way we manufacture vehicles is evolving, one thing that will stay the same is the quality of our workforce and their ability to get the job done,” said Governor Mike DeWine. “Honda and LG Energy Solution now join a long list of companies that have looked all over the country for the best place to do business and have chosen Ohio because we have the ideal economic climate and an innovative and talented workforce. Today’s announcement is further proof that there is no better place to be right now than in the great state of Ohio.”
“Honda and LG Energy Solution had many other states vying for this historic investment, and they chose Ohio,” said Ohio Lt. Governor Jon Husted. “Ohio’s talented workforce and strong business environment, along with Honda’s commitment to quality, continue to be a winning combination for the company and this state.”
To support the expansion of these investments, the Ohio Tax Credit Authority will consider a tax credit at a future meeting, and JobsOhio also plans to provide grant assistance. The Administration also plans to work with the General Assembly to secure state funding for local water and transportation infrastructure.
DOE Offers $2.5B Loan To Build EV Battery Cell Manufacturing Plants
“Honda’s new commitment comes after 45 years of collaboration, growth, and success, shaping generational opportunity and investment for Ohioans,” said J.P. Nauseef, JobsOhio president and CEO. “Honda and Ohio have partnered to strengthen its current manufacturing while transitioning, together, to build the vehicles of the future.”
¹ using domestic and globally sourced parts