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Ohio Governor DeWine Announces $4.2 billion in investments by Honda in Ohio for Electric Vehicle Production and Battery Plant

Posted by: New Americans Magazine , October 11, 2022
  • To secure more than 2,500 new Ohio jobs

Ohio Governor Mike DeWine, Lt. Governor Jon Husted, and JobsOhio leaders have announced that Ohio will continue 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, as Honda and LG Energy Solution confirmed that their combined investments of at least $4.2 billion will create a total of 2,527 new jobs in Ohio.

The amount represents between the establishment of a new EV battery plant in Fayette County and the retooling of existing Honda plants in Union, Logan, and Shelby counties for electric vehicle production.

Honda’s renewed commitment to Ohio comes exactly 45 years to the day after Honda leadership visited the Ohio Statehouse in 1977 to announce plans for its first vehicle production facility in the United States, the Marysville Motorcycle Plant.

“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 talented workforce. Today’s announcement is further proof that there is no better place to be right now than in the great state of Ohio.”

Of the total investment announced today, Honda and LG Energy Solution will invest $3.5 billion in the new Fayette County battery plant, which will create at least 2,200 new jobs. A total of $700 million will be invested by Honda to retool its Marysville Auto Plant in Union County, Anna Engine Plant in Shelby County, and East Liberty Auto Plant in Logan County, creating 327 new jobs on top of its current workforce. Once transformed for EV production, the power source for the vehicles made at the Marysville, Anna, and East Liberty factories will come from the new battery plant in Fayette County.

“Honda and LG Energy Solution had many other states vying for this historic investment, and they chose Ohio,” said Ohio Lt. Governor Jon Husted. “Ohio’s talented workforce and strong business environment, along with Honda’s commitment to quality, continue to be a winning combination for the company and this state.”

Construction on the Fayette County battery plant is expected to begin in early 2023, with a goal of starting mass production of advanced lithium-ion battery modules by 2025. The site, at Interstate 71 and U.S. Route 35, offers more than 1,500 acres and is less than an hour’s drive from Columbus, Dayton, Cincinnati, and Chillicothe. It also includes access to utilities, including water, sewer, electricity, and natural gas.

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.

“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 partnership 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.

“We want to thank the leaders of the state of Ohio, as well as in Fayette County, Jefferson Township, Jeffersonville, and Washington Court House for welcoming this new joint venture between Honda and LG Energy Solution and giving us another Ohio community to call home.”

Last month, both companies announced an agreement 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 played 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.”

American Honda Motor Co., Inc., LG Energy Solution, the DeWine-Husted Administration, JobsOhio, the Dayton Development Coalition, One Columbus, and other state, county, and local officials and partners all collaborated to bring the project to Fayette County.

JobsOhio, the state’s private nonprofit economic development corporation, has placed significant focus on supporting the automotive supply chain as original equipment manufacturers have begun to place a major focus on electric vehicle production.

“Honda’s new commitment comes after 45 years of collaboration, growth, and success, shaping generational opportunity and investment for Ohioans,” said J.P. Nauseef, JobsOhio president and CEO. “Honda and Ohio have partnered to strengthen its current manufacturing while transitioning, together, to build the vehicles of the future.”

AccelerateOhio is also shaping the future as a collaborative effort between the state of Ohio, JobsOhio, and 15 public and private organizations to create an innovation ecosystem for the advanced mobility sector – including automotive, aviation, aerospace, and military industries.

To support the expansion of these investments, the Ohio Tax Credit Authority will consider a tax credit at a future meeting, and JobsOhio also plans to provide grant assistance. The Administration also plans to work with the General Assembly to secure state funding for local water and transportation infrastructure. Start of construction is pending local approvals.

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.

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Deba Uwadiae is an international journalist, author, global analyst, consultant, publisher and Editor-in-Chief of the New Americans Magazine Group, Columbus, Ohio. He is a member of the Ohio Legislative Correspondents Association, OCLA.

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American international journalist and author of "The Immigrant on Columbus Way: A True Life Guide To Settling Down As A New Immigrant To America "

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