A Honda sedan strikes down the meeting line on Jan. 28, 2025 on the automaker’s meeting plant in Marysville, Ohio.
Michael Wayland / CNBC
MARYSVILLE, Ohio — Honda Motor is launching the following era of its manufacturing in a traditionally uncommon place for the 75-year-old Japanese automaker: Ohio.
Honda is within the midst of finishing greater than $1 billion in new investments — upped Wednesday from an initially introduced $700 million — within the state this 12 months. Upgrades most notably embody putting in six “giga presses,” which had been made well-known by Tesla, and a brand new “cell” manufacturing system for its upcoming electrical automobile battery circumstances.
The corporate’s rising EV hub in Ohio, together with a separate $3.5 billion battery plant, would be the flagship for Honda’s world manufacturing operations. That features its Marysville Auto Plant being able to producing conventional automobiles, hybrids and EVs on the identical meeting line, officers mentioned throughout a daylong tour of the operations.
“The Honda EV hub in Ohio is establishing the worldwide normal for EV manufacturing for individuals, for expertise and for processes,” mentioned Mike Fischer, North American lead for Honda’s battery-electric automobile tasks. “As we develop EV manufacturing regionally and globally, that is the footprint and the attribute efficiency that will likely be used.”
Honda shows half of one among its new battery packs for electrical automobiles on Jan. 28, 2025 at its engine and parts plant in Anna, Ohio.
Michael Wayland / CNBC
Usually such vital manufacturing adjustments would start in Honda’s residence nation of Japan after which get rolled out to services within the U.S. and elsewhere, based on firm officers.
The Ohio investments had been initially introduced in October 2022 as a part of the Biden administration’s push to on-shore manufacturing. They continue to be vital amid threats of potential will increase in tariffs for imported merchandise equivalent to cars by President Donald Trump.
Honda produced greater than 1 million automobiles at 5 U.S. meeting vegetation in 2024. About 64% p.c had been bought within the U.S., whereas the rest had been exported. It has one meeting plant in Mexico.
As soon as accomplished, Honda will be capable of produce roughly 220,000 automobiles yearly at its Marysville plant, positioned in central Ohio outdoors of Columbus. The 4 million-square-foot facility at present produces a number of Honda and Acura automobiles, that are anticipated to be joined later this 12 months by an all-electric Acura RSX crossover — the primary EV produced by Honda.
Honda 0 Saloon & Honda 0 SUV prototypes
Honda
The Japanese automaker was late to spend money on EVs in contrast with different automakers. It at present sells two all-electric crossovers — Honda Prologue and Acura ZDX — within the U.S., however these automobiles are produced by Basic Motors in Mexico.
The brand new Acura crossover will likely be adopted by the Honda 0 SUV and Honda 0 Saloon EV prototypes the corporate debuted final month at CES in Las Vegas.
The aluminum battery packs for the brand new EVs will likely be produced at Honda’s close by engine complicated in Anna, Ohio — the corporate’s largest engine facility globally that has grown from a small rectangle constructing in 1985 to a greater than 2.8-million-square toes plant.
“We’re establishing this massive aluminum manufacturing expertise for all Honda,” Tim Stroh, EV battery case mission chief, mentioned. “The aim right here is to roll that out to different merchandise, different elements internationally.”
A row of Honda’s new 6,000-ton high-pressure die solid machines that may “megacast,” or “gigacast,” as Tesla has referred to it, battery packs for the automaker at its engine and parts plant in Anna, Ohio.
Michael Wayland / CNBC
To provide the battery packs and different EV parts, in addition to doubtlessly engines sooner or later, the corporate is putting in six huge, 6,000-ton high-pressure die solid machines that may “megacast,” or “gigacast” supplies, as Tesla has referred to it. The large machines are the dimensions of a small home and use an infinite quantity of strain to type components. Present Honda presses go as much as 3,500 tons in Ohio.
Finished accurately, gigacasting can theoretically slash per-unit manufacturing prices by eliminating the welding of dozens of physique components by casting one single module, based on S&P International Mobility.
As soon as the packs are solid, they are going to be shipped from Anna to Marysville and different vegetation to have battery cells from Honda’s three way partnership operations with LG Vitality Answer put in earlier than getting used within the remaining meeting of EVs.
A Honda worker on the automaker’s massive automobile meeting plant in Marysville, Ohio demonstrates
Michael Wayland / CNBC
To mix the battery cells and packs in Marysville, Honda is putting in practically 60 versatile manufacturing “cells,” or zones, for the battery meeting. As an alternative of a conventional meeting line, the place components are put in as a automobile strikes, the brand new manufacturing course of happens parallel to the primary line in zones that make it so any potential slowdowns or issues do not affect the primary line.
“That is thought-about the second founding for Honda,” mentioned Bob Schwyn, senior vice chairman of Honda Growth and Manufacturing of America. “We’re utilizing the chance to reimagine our method to manufacturing.”
Honda has referred to its transition to electrical automobiles, together with gas cells, as its “second founding.” Regardless of slower-than-expected adoption of EVs within the U.S., the corporate maintains beforehand introduced aim of attaining zero environmental affect by 2050, by way of three vital motion areas: carbon neutrality, clear power and useful resource circulation.
Rows of latest “cell,” or zone, manufacturing system for meeting of electrical automobile battery packs on Jan. 28, 2025 at Honda’s Marysville Meeting Plant.
Michael Wayland / CNBC
That targets additionally consists of completely promoting zero-emissions automobiles by 2040. Many different automakers have delayed or withdrawn such targets in recent times.
The greater than $1 billion investments in present Ohio services additionally embody a number of new manufacturing processes and strategies to decrease emissions and waste, together with utilizing a particular type of structural aluminum for the EV battery packs that may be recycled and reused.
“We’re utilizing the chance to reimagine our method to manufacturing and create new worth within the space of environmental accountability,” Schwyn mentioned. “This consists of methods to recapture our merchandise at end-of-life after which recycle or reuse 100% of the supplies, particularly finite supplies for EV batteries to basically make new Hondas out of outdated Hondas.”