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.
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