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Ohio Puts Up $156M in Incentives for Honda Battery Plant

But the factory could see a total investment of $4.4 billion.

Bob Nelson, executive vice-president of American Honda Motors, Co., Inc., announces the automaker’s plans for a $3.5 billion joint-venture battery factory and investing over $700 million in electric vehicle manufacturing in rural southern Ohio during a news conference at the Ohio Statehouse in Columbus, Ohio, on Tuesday, Oct. 11, 2022.
Bob Nelson, executive vice-president of American Honda Motors, Co., Inc., announces the automaker’s plans for a $3.5 billion joint-venture battery factory and investing over $700 million in electric vehicle manufacturing in rural southern Ohio during a news conference at the Ohio Statehouse in Columbus, Ohio, on Tuesday, Oct. 11, 2022.
AP Photo/Samantha Hendrickson

COLUMBUS, Ohio (AP) — Ohio plans to offer approximately $156.3 million in tax incentives and infrastructure improvements for a massive battery plant project that Honda says is key to turning the state into its North American electric vehicle hub.

READ MORE: Honda, LG to Build $3.5B Battery Plant, Hire 2,200 in Ohio 

Officials say the battery plant, to be built jointly with LG Energy Solution of South Korea, will be located in rural Fayette County, about 40 miles (64 kilometers) southwest of the state capital of Columbus.

Of $85 million set aside for infrastructure improvements, $75 million will be for water and utility improvements and the rest will be to improve local and state roads, state officials said Wednesday.

The remainder will go towards tax incentives over a 30-year period, according to state officials. However, local tax incentives are not included in this incentives package.

In an announcement Tuesday, Honda said it will build a $3.5 billion joint-venture battery factory in rural southern Ohio and hire 2,200 people to staff it.

Honda also announced its plans to invest $700 million and add 300 jobs at three of its own Ohio factories to prepare them to start making EVs and components.

The battery plant could see a total investment of $4.4 billion, officials said.


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