Honda has selected neighboring Fayette County for an electric vehicle (EV) battery plant. In a joint venture, 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, Gov. Mike DeWine announced Tuesday morning.
The site is at Interstate 71 and U.S. Route 35, Jeffersonville.
It is about 14½ miles from Sabina to Jeffersonville by car, following the SR 729 route. And of course there are two I-71 interchanges in the northwest quadrant of Clinton County, at SR 73 and at US 68.
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 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.
“This development will benefit the entire region, including our city, in many ways,” said Wilmington Mayor John Stanforth. “We are so pleased by our neighbor’s achievement in attracting this business and look forward to building on their success.”
Clinton County Port Authority Acting Executive Director Beth Huber said, “I am very excited about this announcement for more opportunities coming to our region. As noted in the announcement, this is part of a larger investment in existing businesses around the state, as well as the chance for new businesses and new jobs.”
At the Ohio Statehouse on Tuesday morning, 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 between the establishment of the new EV battery plant in Fayette County, and the retooling of existing Honda plants in Union, Logan, and Shelby counties for electric vehicle production.
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 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.
“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,” said Nelson.
Last month, both companies announced an agreement to establish a new joint venture company to produce lithium-ion batteries in the United States 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.
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.