Honda bets big on EVs with $1 billion investment in Ohio

Japan’s Honda Motor is increasing its investment in its auto manufacturing hubs in Ohio by USD 300 million, a move aimed at boosting the plants’ capacity to make EVs, hybrids and gas-powered vehicles, according to Reuters.  

The announcement comes amid prevailing uncertainty in the electric vehicle market in the US, with President Donald Trump seeking to reverse the pro-EV steps taken by the previous administration.

With this additional investment, Honda’s total planned investment in these three Ohio plants has now been revised to USD 1 billion. The Japanese automaker had in 2022 announced plans to invest USD 700 million in Marysville Auto Plant, East Liberty Auto Plant and the Anna Engine Plant, all in Ohio.

Honda is also collaborating with LG Energy Solution to build a battery plant in which the overall investment is around USD 4.4 billion.  

“We are creating the flexibility to produce ICE, hybrid and battery-electric vehicles on the same production lines in Ohio,” Honda’s US unit senior vice-president Jennifer Thomas told Reuters. “This enables us to quickly respond to changes in customer demand and market conditions.”

Honda’s emerging EV hub in Ohio, including the USD 3.5 billion battery plant, is expected to be at the heart of the company’s global manufacturing operations.  

“The Honda EV hub in Ohio is establishing the global standard for EV production for people, for technology and for processes,” said Mike Fischer, North American lead for Honda’s battery-electric vehicle projects, as quoted in a CNBC report. “As we expand EV production regionally and globally, this is the footprint and the characteristic performance that will be used.”

Honda will be able to produce approximately 220,000 vehicles annually at its Marysville plant once it is upgraded.  

Aluminum battery packs for the EVs will be produced at company’s facility in Anna, Ohio.