Ohio lands $3.5B electric vehicle battery plant with Honda, LG Energy Solution
Honda and LG Energy Solution announced on Tuesday that it plans to construct a new $3.5 billion electric vehicle battery production plant in Fayette County.
The joint venture plant is expected to generate 2,200 jobs and will be located near I-71 and U.S. Route 35 in the Jeffersonville area.
The deal between Honda and LG Energy Solution is set to be formally established this year after receiving regulatory approval. Then the companies will start construction on the plant in early 2023 with the expectation to complete the facility by the end of 2024.
“This will enable us to start mass production of the lithium-ion battery modules by the end of 2025. This new joint venture battery plant also will be part of the EV hub in Ohio,” said Bob Nelson, executive vice president for Honda of America.
That EV hub is the second big move Honda announced on Tuesday. The company said it will be investing $700 million in Ohio’s three Honda plants in order to “re-tool” the facilities for electric vehicle production.
The plan involves Honda’s Marysville Auto Plant, East Liberty Auto Plant, and Anna Engine Plant.
The transition will see the Anna Engine Plant produce the battery cases. The battery cases from the Anna Engine Plant and the battery modules produced in Fayette County will be combined on a sub-assembly line at the Marysville plant, then installed in the electric vehicles produced in Marysville and East Liberty.
The $700 million investment is expected to create 300 new jobs as Honda plans to begin production and sales of its new EVs in North America in 2026.
Nelson said the plan for Ohio’s new EV hub and battery production does not result in a loss of jobs in the near future for employees who manufacture Honda internal combustion engine vehicles.
“The internal combustion will go on for quite some time. It will be 2040 when we change over to either electric vehicles or fuel cell electric vehicles, but we'll have hybrid and petrol to meet the customers’ needs until then. So, there's a transition there that takes some time,” said Nelson.
Honda has a goal to become carbon neutral by 2050.
Nelson said that Honda and LG Energy Solution is still in ongoing discussions with the state of Ohio to finalize economic development incentives.