Japanese auto giant Honda Motor Company has announced a major EV and battery production investment plan to accelerate its transition from internal combustion engines (ICEs) to electric powertrains. With an aim to turn the state of Ohio into its “EV Hub,” Honda has decided to invest $700 million in three separate Ohio plants to retool for EV production.

There are two major parts to this announcement today. First, Honda is investing $700 million in three separate Ohio plants to retool for electric vehicle production. The huge amount of investment set aside by the Japanese automaker will be used to transform the company’s already existing Marysville Auto Plant (MAP), East Liberty Auto Plant (ELP) and Anna Engine Plant (AEP) to prepare them for the electrified future. The second part of the investment is a joint venture (JV) between Honda and LG Energy Solutions to set up a new battery production plant in Fayette County, Ohio.

The planned investment, which has been announced 45 years after the opening of Honda’s first production facility in Ohio (in October 1977), will create more than 300 new jobs.

The investment plan shows Honda’s commitment to achieve carbon neutrality for all of its products and corporate activities by the end of 2050. Honda also reiterated that it wants to make battery-electric cars (BEVs) and fuel cell electric vehicles (FCEVs) represent 100 per cent of its vehicle sales by the end of next decade (2040) in North America.

Bob Nelson, Executive Vice President (EVP) of American Honda Motor Co. Inc., said that his company’s decision to make new investments in EVs in the Buckeye State was really exciting.

Speaking on the topic, Nelson said, “Honda has built hybrid-electric vehicles in Ohio for a number of years, and the experience and expertise of our associates in manufacturing, product development, and purchasing will serve as an important foundation as we transition to the electrified future.”

The huge investment will likely not change Honda’s plan to launch its first EV in the United States – the Prologue – in 2024. From 2026, this EV will be produced locally in the United States.

Last year, Honda set a new record by producing and selling a record of more than 100,000 EVs, including the Accord Hybrid, CR-V Hybrid and Insight hybrid sedan, in the United States. The new investment in Ohio will help the automaker accelerate its shift from ICEs to EVs.