Honda to build JV U.S. battery plant, retool Ohio plants (updated)

LG

11/10/2022 19:25

(Adds comments by Biden, details on plant)
    By David Shepardson
       WASHINGTON, Oct 11 (Reuters) - Honda Motor Co Ltd
 7267.T  and LG Energy Solution  373220.KS  on Tuesday announced
Ohio as the site of their planned $4.4 billion joint-venture
battery plant.
    The two companies had announced the plan in August but had
not settled on a U.S. location. They said on Tuesday they are
initially committing to investing $3.5 billion and creating
2,200 jobs but said the overall investment is projected to reach
$4.4 billion.
    Honda will separately invest $700 million to retool three
Ohio plants and add 300 new jobs, as it seeks higher electric-
vehicle production.
    Honda will produce battery cases at its Anna, Ohio, engine
plant that will be combined with battery modules from the JV and
then installed in EVs built at two other Ohio plants.
    The plant is the latest in a string of battery plants
announced as automakers race to shift gas-powered production to
electric vehicles.
    The U.S. Congress in August approved billions of dollars in
tax incentives and grants for automakers to encourage increased
production of EVs and batteries in the United States. It also
approved new consumer tax credits to incentivize North American
battery and EV production.
    President Joe Biden praised the Honda-LG announcement, 
saying the companies were "committing more than $5 billion
toward electric vehicle battery manufacturing and factory
retooling across the state." Biden wants 50% of all new vehicles
assembled by 2030 to be EVs or plug-in hybrids.
    Honda plans to begin production and sales of EVs in North
America in 2026, based on its new Honda e:Architecture.
    The two companies plan to begin construction in early 2023
and aim to complete the new facility about 40 miles (64
km)southwest of Columbus, Ohio, by the end of 2024.
    The plant aims to have approximately 40GWh of annual
capacity as it starts mass production of lithium-ion batteries
by the end of 2025.
    EV batteries produced at the new JV plant will be provided
to Honda auto plants to produce EVs to be sold in North America.
Honda aims to make EVs and fuel cells represent 100% of its
vehicle sales by 2040.
    In April, Honda and General Motors Co  GM.N  said they would
develop a series of lower-priced electric vehicles based on a
new joint platform, producing potentially millions of cars from
2027 in a bid to surpass Tesla Inc  TSLA.O  in sales.
    That announcement expanded on plans for GM to begin building
two electric SUVs for Honda starting in 2024 - the Honda
Prologue and an Acura model.   
    Automakers also face heightened requirements from
California, the largest state auto market, which is mandating
that carmakers stop selling gasoline-only vehicles by 2035 and
have EVs represent at least 80% of their sales by then.
 (Reporting by David Shepardson in Washington
Editing by Alexander Smith and Matthew Lewis)
 ((David.Shepardson@thomsonreuters.com; 2028988324;))