Honda reveals next steps in US EV manufacturing
Honda has published more details on the conversion of its plants in the US state of Ohio for the future production of electric cars and the components for them. The Marysville Auto Plant (MAP) will begin preparations for the production of electric cars in January 2024.
For the planned factory conversions, the two production lines that currently manufacture combustion engines and hybrids will be consolidated into one line for the production of electric cars. Employees at the Marysville plant will be trained for future electric car production from the end of 2023. Honda will move production of the Accord from Marysville to the Indiana Auto Plant (IAP) in 2025.
The Anna Engine Plant (AEP) will move the production of components for two generations of drive systems to the Alabama Auto Plant (AAP) engine plant. The AEP will manufacture battery housings in the future. These housings will be combined with the battery modules produced at the battery plant Honda is building with LG Energy Solution (LGES) in Ohio. The Georgia Transmission Plant (TMP-G) will work with a Honda supplier to install a new line to build complete electric axle drives.
In terms of securing the necessary raw materials in the USA, which need to be locally sourced in order to fully qualify for the Inflation Reduction Act’s subsidies, Honda has also already entered into agreements, such as the deal announced at the end of February with Ascend Elements for the supply of nickel, cobalt and lithium from recycled lithium-ion batteries. Honda has been revamping its BEV strategy lately, and is in the process of setting up a specialized division to deal with emissions-free vehicle technology.
Honda also refers to their plan for all products to be carbon neutral by 2050, for which it intends to drop combustion vehicle sales by 2040, however, “the company plans to sustain current ICE and hybrid-electric vehicle production in order to continue to meet anticipated strong customer demand through 2030 and beyond”. Honda adds that the plan is to use the revenues from ICE sales to fund the investment “in the electric future”.