Ohio continues its historic dominance in the automotive manufacturing industry as Honda selected Ohio to lead its electric vehicle (EV) production and, with LG Energy Solution, a joint venture battery plant. The new facility, located in Fayette County, will employ 2,200 new jobs and invest $3.5 billion. The combined Ohio investment of $4.2 billion includes the retooling of existing Honda plant in Anna, Ohio located in Shelby County.
Company Profile
Honda Motor Co., Ltd. is responsible for developing, producing, and selling automobiles, motorcycles, power products, and aviation products worldwide. Honda now delivers over 30 million products annually through its three product lines. Honda and its partners build products in more than 60 manufacturing plants in 27 countries, employing about 220,000 associates globally. On a global basis, by 2050, Honda is striving to achieve carbon neutrality for all products and corporate activities, as well as zero traffic collision fatalities involving Honda automobiles and motorcycles.
LG Energy Solution, a split-off from LG Chem, is a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. With 30 years of experience in revolutionary battery technology and extensive research and development (R&D), the company is the top battery-related patent holder in the world, with over 25,000 patents. Its robust global network, which spans North America, Europe, Asia, and Australia, includes battery manufacturing facilities established through joint ventures with major automakers such as General Motors, Stellantis N.V., Hyundai Motor Group, and Honda Motor Co. Ltd.
Business Need
Honda and LG Energy Solution (LGES) announced their decision to establish a new joint venture company to produce lithium-ion batteries in the U.S. to power Honda and Acura EV models. The pouch-type batteries produced at the new plant will be supplied to Honda facilities. The plant aims to support Honda’s target of making battery-electric and fuel-cell electric vehicles 100 percent of its vehicle sales by 2040.
“In another major step toward electrification, LG Energy Solution’s innovative battery technologies will not only power Honda’s brand-new EV models but support Ohio’s green economy. We extend our gratitude to everyone who plays ed a role in making this happen,” said Dong-Myung Kim, executive vice president of Advanced Automotive Battery Division at LG Energy Solution. “With our commitment to building the world-best quality products, together with Honda, we look forward to not only creating thousands of quality jobs here in Ohio but growing together with the community.”
Honda also needed to prepare for future EV production. As part of the project, Honda announced the retooling of existing Honda plants in Union, Logan, and Shelby counties for electric vehicle production.
Ohio Solutions
Ohio’s commitment to innovation makes it a natural fit for the thriving electric vehicle supply chain and electric vehicle manufacturing opportunities. Ohio’s vast history in the automotive industry and automotive supply chain, as well as its overall proximity to resources, manufacturers, and end markets, put the state in a prime position for future electric vehicle production.
Honda has a legacy of choosing Ohio for trailblazing initiatives. In addition to choosing Ohio for its motorcycle plant on October 11, 1977, the Marysville Auto Plant produced the very first Honda Accord on November 1, 1982, and the Anna Engine Plant, which opened in 1985, now produces more than 1 million four-cylinder, V-6, and turbo engines for Honda auto plants throughout North America. The East Liberty Auto Plant opened in 1989 and has manufactured over 4.5 million Honda and Acura vehicles since its inception. In 1992, Honda opened a major product development center in Raymond, Ohio, that now creates many of the vehicles built in Ohio.
“It has been more than four decades since Honda first saw great promise in Ohio, and although the way we manufacture vehicles is evolving, one thing that will stay the same is the quality of our workforce and their ability to get the job done,” said Ohio Governor Mike DeWine. “Honda and LG Energy Solution now join a long list of companies that have looked all over the country for the best place to do business and have chosen Ohio because we have the ideal economic climate and an innovative and talent workforce.”
“Honda is proud of our history in Ohio, where our U.S. manufacturing operations began more than four decades ago. Now, as we expand Honda’s partnerships with Ohio, we are investing in a workforce that will create the power source for our future Honda and Acura electric vehicles,” said Bob Nelson, executive vice president of American Honda Motor Co., Inc.
Project Stats:
- Location: Fayette County
- Total capital investment: $3.5 billion
- Jobs committed: 2,200
- Collaborators: American Honda Motor Co., Inc., LG Energy Solution, the DeWine-Husted Administrations, JobsOhio, Dayton Development Coalition, Fayette County