The partnership between Honda and LG Energy Solution to build a $4 billion battery manufacturing facility in Fayette County for Honda and Acura electric vehicles remains strong, local officials say, despite a stinging setback on plans to produce EVs in Ohio.
Earlier this month, Honda’s Tokyo headquarters announced that it was halting development of three electric vehicles to be built in Ohio, following more than $15 billion in losses on EVs due to tariffs, waning demand and economic uncertainty. One of them, the Acura RSX, was slated for production in Marysville. Both that plant and another in East Liberty in Logan County had already retrofitted its factories for EV production.
L-H Battery Company, the joint venture between Honda and LG, meanwhile has had to respond to the news, and maintain confidence that its 3-year-old investment in batteries will pay off.
“We’re going to continue to assess the impact of Honda’s announcement,” said Caroline Ramsey, spokeswoman for L-H Battery, noting that the company is “in discussions with our parent companies regarding related future business opportunities that align with the technology expertise we have developed thus far at L-H Battery.”
JobsOhio, the nonprofit in charge of statewide economic development, previously awarded grants totaling $237 million to Honda and LG Energy Solution for the project, surpassing the incentive given to the Intel project in Licking County.
Ramsey declined to say specifically what other products the battery plant will produce, saying that having flexibility is important.
Fayette County Engineer Jason Little said he’s aware of what he calls “electrical storage packs,” possibly generators, to be produced by L-H.
Fayette County, with support from Ohio, has alreadu built a $4 million water plant to service the battery facility and an Amazon data center next to the L-H plant.
“It’s a worry,” said Little of Honda’s change of course, noting that he’s also confidant that the company will figure something out.
L-H Battery now has more than 600 associates at its Jeffersonville plant. “As we are still in the ramp-up phases of our operations, we do not anticipate an impact to our current employment,” said Ramsey. Jobs include engineers, machine operators, maintenance technicians and dozens of skilled and unskilled workers and managers
The Acura RSX was to be Honda Marysville’s first fully electric vehicle, “built at the Honda EV Hub in Ohio using domestic and globally made parts, the all-electric RSX will play a defining role in the evolution of Acura innovation,” according to its website.
The Tokyo news, including that top executives will have to return up to 30% of their pay since Jan. 1 and executive officers see an annual 25-30% pay cut, also is upsetting some in Union County, whose growth and prosperity has been largely linked to the success of Honda.
Said Cleveland-based economist Zach Schiller after the news broke March 12: “You sort of wonder if they’re not going to be making the cars, they’re not going to need the batteries.” Schiller is with Policy Matters Ohio, a left-leaning think tank.
Growth and development reporter Dean Narciso can be reached at dnarciso@dispatch.com.
This article originally appeared on The Columbus Dispatch: After Honda axes EVs, what’s next for $4B Fayette County battery plant?
Reporting by Dean Narciso, Columbus Dispatch / The Columbus Dispatch
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