Honda is investing $700 million to retool three of its plants and build a new $3.5 billion battery plant in the U.S. for EV mass production. The company is emphasizing its flexibility in adapting to the shift to accommodate EV production. Honda can potentially produce hundreds of EVs per day at its revamped Marysville Auto Plant in Ohio, which could surpass U.S. EV sales totals for all but Tesla. The company has full flexibility within the capacity of its lines to adjust production based on market demand.
With total output at Marysville potentially reaching 220,000 vehicles annually, Honda plans to produce EVs at both its Marysville and East Liberty plants as part of its EV hub strategy. The company aims to start EV production at Marysville in 2025 and establish a regional supply chain with over 40 years of experience in producing gasoline vehicles at the plant. Honda is replacing two assembly lines at Marysville with a single line that can produce both EVs and internal combustion engine vehicles. The company is also creating additional space in its manufacturing facilities to accommodate new EV production methods.
Honda will manufacture integrated power units in Ohio, including the production of battery modules with cells supplied by a nearby joint venture. In addition to building a 40 gigawatt-hour battery plant, Honda is targeting a 300-mile range for its upcoming EVs that will also feature steer-by-wire technology and be ready for autonomous driving. The company’s EVs will not be niche models or electric versions of existing models like the Accord or CR-V, but mid- to large-sized vehicles built on Honda’s original dedicated EV platform.
The upcoming Honda EVs, set to go on sale in 2025, will be based on a platform that underpins the 0 Series EVs showcased at CES earlier. The company is working on concepts like the rakish Saloon and Space-Hub that may point to future electric sedan and minivan offerings. In addition, Honda plans to produce the Sony-Honda EV, branded Afeela, within the Ohio EV hub starting in 2026. Honda’s first mass-market EV, the GM-made Prologue, is set to arrive at dealerships this month, marking the company’s entry into the EV market.
Despite not currently selling any EVs, Honda’s investment in EV production in the U.S. signals a strategic shift toward electric mobility. While the company has the potential to produce more EVs annually with the addition of the East Liberty plant, it may face competition from other automakers like Hyundai, which plans to manufacture 300,000 EVs annually at its Georgia plant. Honda’s focus on flexibility and adaptability in its production lines positions it to respond to changing market demands and establish a strong presence in the growing EV market in the U.S.
