A new production facility jointly owned by Honda Motor and LG Energy Solutions finally has a future location. This week, the companies announced plans to build a new multibillion-dollar plant to produce electric vehicle batteries in Ohio.
Construction of the facility, which will be located outside of Columbus, is expected to start early next year, with mass production of lithium-ion batteries projected to begin by the end of 2025.
The plant is expected to cost $3.5 billion, and overall investments for the yet-unnamed venture total $4.4 billion.
Honda also announced plans to invest $700 million in its existing auto and powertrain plants to accommodate the production of electric vehicles, which the Japanese automaker expects to start producing and selling in North America around 2026.
The plans are part of the company’s strategy to invest in US EV production and batteries amid increasing emission regulations, sourcing guidelines, and legislation such as the Inflation Reduction Act.
The Inflation Reduction Act and the United States-Mexico-Canada Agreement (formerly the North American Free Trade Agreement) increased requirements for domestically sourced vehicle parts and materials to qualify for financial incentives or avoid tariffs.
Honda has previously announced a goal to switch to all battery-electric and fuel-cell electric vehicles by 2040 in North America and said it plans to achieve carbon neutrality by 2050.
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