KEY POINTS

  • Honda plans to make the Marysville Auto Plant its first auto plant in the country to make EVs
  • The auto plant is expected to begin EV production as early as January 2024
  • East Liberty Auto Plant and Anna Engine Plant also be transformed to establish the EV Hub

As Honda embarks on a journey to build electric vehicles in the U.S., the automaker has announced the next steps in establishing its EV Hub in Ohio.

The company plans to transform the Marysville Auto Plant (MAP), where it began auto production for the U.S. in 1982, to become Honda's first auto plant in the country to make electronic vehicles (EVs). Along with MAP, East Liberty Auto Plant (ELP) and Anna Engine Plant (AEP) will also be transformed to establish the EV Hub, Electrek reported.

Honda announced last year that it would invest $700 million to retool several of its existing auto and powertrain plants, as it planned to begin production and sales of electronic vehicles in North America in 2026. The company also entered a joint venture with LG Energy Solutions (LGES) to build a new battery factory in Fayette County.

MAP is expected to begin EV production as early as January 2024. It will consolidate two assembly lines that are now making internal combustion engines and hybrid-electric vehicle systems for the production of EVs and EV components. Employees at the plant will receive training so they can acquire the skills required for EV production, the company said in a news release.

While MAP undergoes consolidation of its production lines, Honda plans to move the production of the Honda Accord to the Indiana Auto Plant (IAP) in 2025. The move is expected to maintain the production volume of the model intact.

The company also plans to transfer component production for two different generations of engines at Anna Engine Plant (AEP) to the engine plant at the Alabama Auto Plant (AAP) to accommodate space for future IPU Case production. These cases will be combined with the battery modules produced at the battery facility Honda will open in Ohio in partnership with LGES. The battery plant with an investment of $3.5 billion is scheduled to be completed by the end of next year. It aims to achieve approximately 40 gigawatt hours of annual production capacity.

Honda, which employs more than 22,000 associates in America, said it aims to maintain stable employment as it transitions to building electric vehicles, unlike many automakers that have had to trim their workforce.

According to a study by the Economic Policy Institute, the U.S. could see losses of around 75,000 auto jobs by 2030 if electric cars rise to 50% of domestic sales.

Honda Motor's logo is seen on Civic sedan car at its showroom in Tokyo
Reuters