Honda to Produce First In-House EV in the U.S. by 2025
Advancement of Honda's $4.4 billion electric vehicle and battery hub in Ohio is proceeding as planned to commence vehicle and battery assembly in 2025.
The Japanese automaker is investing $700 million to reconfigure three plants for EVs and EV components, and is establishing a battery facility from scratch as part of a $3.5 billion joint venture with LG Energy Solution. The new EV facility, situated northwest of Columbus, Ohio, is poised to generate 300 employments.
In an era where certain automakers are decelerating their EV developmental initiatives, Honda has several EV projects underway. Localizing EV production in North America is crucial for automakers amidst the burgeoning market.
Honda has been relatively slow compared to some automotive companies in launching EVs in the U.S. Instead, it has integrated hybrid variants into its high-volume merchandise, a technology it contends mainstream consumers are more willing to adopt.
Corporate officials also assert that Honda will leverage profits from gasoline and hybrid vehicle sales to reinvest in the development of EVs and other technologies, with 2025 as the year for intensifying Honda's EV endeavors.
Goals
Honda aims to achieve 100 percent zero-emission vehicle sales worldwide by 2040, including battery-electric and fuel cell EVs. The Ohio EV hub, according to the company, marks the initial step and will establish benchmarks for global and North American production.
"Our mission is to begin building original Honda and Acura battery-electric vehicles in North America to meet the needs of our customers and our goal of achieving carbon neutrality for our products and operations by 2050," stated Bob Nelson, Executive Vice President, American Honda Motor Co., during a press briefing with reporters.
Nelson affirmed that Honda's EV production in Ohio, where its gasoline engine vehicle manufacturing and engineering operations are located, is part of a "comprehensive strategy for vehicle development, production systems, and procurement structures."
The battery joint venture, dubbed L-H Battery, will boast an annual capacity of 40 gigawatt-hours. These batteries will energize the EVs slated for assembly at Marysville Auto Plant, Honda's inaugural car manufacturing facility, and East Liberty Auto Plant. The Anna Engine Plant will fabricate what Honda terms intelligent power unit enclosures to house the EV battery and serve as an integral component of the vehicle infrastructure.
Local EV production
Initial EV sales in the U.S. have predominantly catered to affluent consumers, with the next significant growth segment anticipated to be mainstream middle-class purchasers.
North American assembly of EVs, their batteries, and components is required for eligibility for a $7,500 federal tax credit. Additionally, the materials utilized in the batteries must originate from a country with which the U.S. has a free trade agreement in place.
This federal incentive substantially mitigates the cost of expensive EVs, rendering the hefty purchase more acceptable to everyday car buyers. Automakers are persistently striving to develop lighter, more energy-dense batteries, which will also translate into reduced EV pricing.
Nelson emphasized that constructing vehicles where they are sold has been a longstanding tenet of Honda, and its new EV hub is no exception.
He refrained from confirming whether Honda's e:Architecture EVs will qualify for the $7,500 federal tax credit but indicated that the company is "building its supply chain to be competitive in the class."
Marysville Auto Plant will be the inaugural facility to commence operations. It currently manufactures the Honda Accord and Accord hybrid, as well as the Acura Integra and TLX. To accommodate the EVs slated for production there, Honda will relocate the Accord assembly to its Greensburg, Ind., facility.
Progress
The Marysville Auto Plant is set to be the first facility to come online. Honda utilized its customary December shutdown period to consolidate its existing two lines into one, dedicated to fabricating both internal combustion engine vehicles and EVs. The reconfiguration entails expanding space for subassembling the intelligent power unit enclosures and delivering parts on-site, as well as staging for both ICE vehicle and EV components. At the Anna Engine Plant, Honda introduced six 6,000-ton die-cast machines, the largest ever used, to forge the battery enclosures.
Following the consolidation of lines, Marysville Auto Plant's annual capacity totals 220,000 vehicles. Nelson declined to specify the number of EVs Honda intends to produce there but affirmed that the facility is capable of churning out "hundreds per day." Producing gasoline-powered vehicles and EVs on the same line affords Honda the flexibility to align with the fluctuating demand for EVs, he remarked.
L-H Battery is slated to commence battery trial production in late 2024, with the timing synchronized with the Marysville-built EVs. Eventually, Marysville will exclusively assemble EVs.
East Liberty Plant, which currently manufactures the Acura MDX and RDX, as well as the Honda CR-V and CR-V hybrid, is undergoing two expansions, including reinforcing its overhead conveyors to support heavier vehicles. It will be the second assembly plant to commence operations. East Liberty will likewise fabricate EVs and gasoline-powered vehicles concurrently until it transitions into an all-EV facility.
