An employee inspects the door of a 2018 Honda Accord vehicle during production at the Honda of America Manufacturing Inc. Marysville Auto Plant in Marysville, Ohio, on Thursday, December 21, 2017.
Ty Wright | Bloomberg | Getty Images
Honda Motor and LG Energy Solution said Tuesday that a new multibillion-dollar plant to manufacture batteries for electric vehicles will be established in Ohio.
Construction on the new facility – 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, and the total investment from the undisclosed joint venture will eventually reach $4.4 billion, the companies said.
Honda and LGES announced plans for the joint venture and battery plant last year, but had not yet disclosed a location. The facility is expected to employ about 2,200 people, the companies said.
In addition to the new battery plant, Honda said Tuesday it plans to invest $700 million to convert several of its existing auto and powertrain plants to produce EVs. The Japanese automaker expects to begin production and sales of electric vehicles in North America in 2026.
The announcements are part of several recent billion-dollar investments in U.S. EV and battery manufacturing amid tougher emissions regulations and legislation to encourage domestic production.
Automakers are facing stricter purchasing 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 tightened requirements for domestic auto parts and materials to avoid tariffs or qualify for financial incentives.
Honda plans to phase out traditional combustion engines and offer battery-electric and fuel-cell electric vehicles exclusively in North America by 2040. It is part of the company’s plans to be carbon neutral by 2050.
LGES – a spin-off of LG Chem – has also announced joint ventures with General Motors, Hyundai Motor and Jeep maker Stellantis.