Honda to build $3.5 billion EV battery plant in Ohio

Ohio is poised to become Honda's North American electric vehicle hub.

Driving the news: A new $3.5 billion EV battery factory is coming to Jeffersonville, about 40 miles southwest of Columbus, the automaker announced yesterday.

Why it matters: The investment is another big win for the state's future as a technology-focused "Silicon Heartland," with Central Ohio at its center.

• Intel broke ground on a semiconductor factory in Licking County last month and supercar manufacturer Hyperion is moving to the West Side.

By the numbers: The new Fayette County plant is expected to employ 2,200 workers. Honda also plans to invest $700 million in its three existing Ohio plants to prepare them to start making EVs and components.

• The three plants — in Marysville, East Liberty and Anna — will add another 327 jobs to their current 8,300.

Catch up quick: Honda, which is building the new factory along with South Korean battery maker LG Energy Solution, announced that partnership in August but didn't specify where the plant would be built.

• But speculation ramped up after the Wall Street Journal reported a plant was coming to Ohio and Gov. Mike DeWine and Lt. Gov. Jon Husted teased the possibility.

The big picture: Honda's news follows waves of U.S. battery and EV assembly plant announcements as automakers try to re-establish a domestic supply chain, per AP.

• The new federal Inflation Reduction Act gives them more incentives to build here, including a tax credit for consumers buying an EV with a battery procured and built in North America.
• Building near Central Ohio offers close proximity to resources, labor and existing plants, American Honda Motor Co. executive vice-president Bob Nelson told the Columbus Dispatch.

Flashback: Exactly 45 years ago yesterday, Honda announced it would begin manufacturing products in the U.S. at its Marysville plant, which opened in 1979.

What they're saying: "We now face a once-in-a-100-years change from the internal combustion engine to electrification. Once again, this requires a bold vision for the future," Nelson said at the announcement.

• DeWine called yesterday "a great day for Ohio."

What we're watching: An incentive package from the state hasn't been finalized yet.

What's next: Construction begins early next year, with mass production of lithium-ion batteries exclusively for Honda vehicles expected to begin by the end of 2025.