Honda and LG Energy Solutions have broken ground on their $3.5 billion electric vehicle (EV) battery plant in Fayette County, Ohio. The joint venture aims to start mass production in 2025 and has committed to manufacturing pouch-type batteries to be supplied to Honda’s plants for future EVs.
The plant will play a central role in Honda’s EV strategy in the US and is part of the automakers’ plans to turn Ohio into its “EV hub”. In addition to the battery plant, Honda is investing $700 million to retool three plants in the state for EV production. The company expects the new facility to be completed by the end of 2024, with an annual production capacity of 40 GWh when fully operational.
Honda recently announced its overhaul of business operations to accelerate its EV rollout, including creating a new Electrification Business Development Operations to consolidate and streamline development.
See also: Zeekr 001 Sets new Guinness World Record with a drift at 129 MPH and fastest slalom by an EV
The company revealed its first electric SUV, the Honda Prologue, co-developed with GM, in October, and plans to begin pre-sales this year followed by deliveries in 2024. Acura’s first fully electric vehicle, the ZDX, is also expected to launch alongside the Prologue.
#HappeningNow: LG Energy Solution and Honda will break ground today on a joint venture #EVbattery plant in Jeffersonville, Ohio!
The facility represents a $3.5 billion investment – expected to grow to $4.4 billion overall. #InvestinginAmerica pic.twitter.com/BUpg8FvtB9
— Honda in America (@HondaInAmerica) February 28, 2023
Despite plans to build its own e:Architecture EV platform, Honda will rely on GM’s technology until 2026 when the battery plant is expected to become fully operational. The new plant and EV platform will help Honda streamline production and lower costs, but the competition is already achieving double-digit (or 100%) EV sales while expanding production capabilities. With only a few years left before its plans come to fruition, Honda risks doing too little too late.
