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MARYSVILLE, 12 October 2022: In Ohio, Honda announced two major investments, including USD 700m to renovate several of its existing auto and powertrain plants in order to produce electric vehicles.
Honda & LGES JV
As part of a previously announced joint venture, LG Energy Solution (LGES) and Honda are planning to build a factory to produce battery modules for electric vehicles, pending final government approval.
Fayette County in Ohio, roughly 40 miles southwest of Columbus, will be the location of the JV battery facility.
Honda’s Marysville Auto Plant (MAP), East Liberty Auto Plant (ELP), and Anna Engine Plant (AEP) will be transformed for the electrified future as a result of the announcement, which was made on 11 October 1977, 45 years to the day after Honda announced the opening of its first manufacturing facility in Ohio. Additionally, over 300 new jobs will be created.
Honda e:Architecture
On the basis of its new Honda e:Architecture, Honda intends to start manufacturing and selling Honda EVs in North America in 2026.
With the help of the USD 700m retooling, AEP colleagues will be able to manufacture the battery casing, which will then be assembled at MAP with battery modules from the JV facility before being mounted in EVs made by associates at both MAP and ELP.
New EV Hub
Along with the new EV battery facility, these Honda facilities will act as a new EV hub in Ohio and be crucial in helping the firm build its knowledge and experience in EV production, which will later be disseminated throughout its North American auto production network.
Honda’s EV hub will make use of the business’s established manufacturing, product development, and procurement activities in Central Ohio.
Honda unveiled a vision to sell only battery-electric and fuel cell electric vehicles by 2040 in North America as part of their objective to achieve carbon neutrality for all goods and corporate operations by 2050.
In the United States, Honda developed and sold a record number of electrified vehicles in 2017—including the Accord Hybrid, CR-V Hybrid, and Insight hybrid sedan. Honda’s latest investment in its Ohio manufacturing facilities will help with the production of electric vehicles and their parts.
Joint Venture for New EV Batteries
A new joint venture (JV) between Honda and LGES will provide the battery modules to Honda, provided all standard closing requirements, including as regulatory permissions, are met. This joint venture production facility will invest USD 3.5bn in Fayette County, Ohio, employ 2,200 workers, and make pouch-type batteries that will be delivered to Honda plants for the manufacture of electric vehicles.
Honda and LGES will launch their joint venture in 2022, subject to regulatory permissions, with an estimated USD 4.4bn in total investment. Early in 2023, the two businesses want to start building in Fayette County with a goal of having the new production plant operational by the end of 2024.
By the end of 2025, this will make it possible to begin mass producing battery modules with cutting-edge pouch-type Li-ion cells, with an annual production capacity of roughly 40GWh.
North American Honda Production
Beginning in November 1982 at the Marysville Auto Plant, Honda has been manufacturing cars in North America for 40 years. In Marysville, Ohio, Honda produced its first motorcycles in 1979 to kick off its North American manufacturing activities.
Honda has steadily expanded its local manufacturing capabilities over the past 40 years, and the company now has more than 30,000 employees working at 18 plants with an annual production capacity of 1.86 million cars, nearly 4 million engines, 500,000 power equipment products, 300,000 powersports products, the HondaJet advanced light jet, and GE Honda HF120 turbofan engines. More than 95% of all Honda and Acura cars sold in the United States in 2021 were produced in the continent.
Honda has made overall investments in its North American manufacturing capacity of up to USD 24.6bn, including more than USD 3.6bn in the last five years alone. The company deals with roughly 800 original equipment manufacturers in North America, and it has spent more than USD 535bn on parts overall.
Comment
Bob Nelson, executive vice president of American Honda Motor Co., Inc. said, “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.”
“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,” Nelson added.
