Another $237M granted to Honda battery plant project in Ohio

Feb 8, 2023, 12:10 PM | Updated: 3:09 pm
Ohio Sen. Sherrod Brown voices his support of Honda during a news conference at the Ohio Statehouse...

Ohio Sen. Sherrod Brown voices his support of Honda during a news conference at the Ohio Statehouse in Columbus, Ohio, on Tuesday, Oct. 11, 2022. The automaker announced plans for a $3.5 billion joint-venture battery factory and investing over $700 million in electric vehicle manufacturing in rural southern Ohio that will provide 2,200 job at the factory as it starts to turn the state into its North American electric vehicle hub. (AP Photo/Samantha Hendrickson)

(AP Photo/Samantha Hendrickson)

COLUMBUS, Ohio (AP) — Ohio’s privatized economic development office has finalized an agreement with Honda to infuse another $237 million into development of a massive battery plant project that the Japanese automaker plans to use to transform the state into its North American electric vehicle hub.

JobsOhio posted details of the package of three grants on Wednesday. They include a $140 million economic development grant for the plant Honda is building jointly with LG Energy Solution of South Korea, a $10 million workforce grant for the project itself and $87 million to retool Honda’s existing facilities.

The money, payable over the next 10 years, comes on top of the approximately $156.3 million in tax incentives and infrastructure improvements from the state of Ohio — which has begun to position itself as a regional epicenter of leading-edge technology.

Intel CEO Patrick Gelsinger dubbed it the “Silicon Heartland” in a tweet last year, after his company announced its plans to invest $20 billion to build a new chip factory outside Columbus. And in his State of the Union address Tuesday, President Joe Biden called that project “literally a field of dreams.” The Democrat said it will provide high-paying jobs, attract related companies to the region and bring the critical chip manufacturing industry back to U.S. soil.

The Intel project is the largest direct private investment in Ohio’s history. The Honda-LG project is the largest foreign investment, an extension of Honda’s 45 years of operating in the state.

The new plant is set to be located in rural Fayette County, about 40 miles (64 kilometers) southwest of the state capital of Columbus.

Honda and LG have agreed to create 2,527 new jobs and more than $140 million in new payroll, including 2,200 jobs through the Honda-LGES battery plant and 327 through Honda’s retooling. Honda has said it is investing $700 million and adding 300 jobs at three of its own Ohio factories to prepare them to start making EVs and components.

Honda and LG have committed at least $4.2 billion in capital investment to the two efforts. JobsOhio said that amounts to $17.72 for every $1 it is investing.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

(Facebook Photo/City of San Luis, Arizona)...
Associated Press

San Luis authorities receive complaints about 911 calls going across border

Authorities in San Luis say they are receiving more complaints about 911 calls mistakenly going across the border.
4 days ago
(Pexels Photo)...
Associated Press

Daylight saving time begins in most of US this weekend

No time change is observed in Hawaii, most of Arizona, Puerto Rico, the U.S. Virgin Islands, American Samoa, Guam and the Northern Marianas.
12 days ago
Mexican army soldiers prepare a search mission for four U.S. citizens kidnapped by gunmen in Matamo...
Associated Press

How the 4 abducted Americans in Mexico were located

The anonymous tip that led Mexican authorities to a remote shack where four abducted Americans were held described armed men and blindfolds.
12 days ago
Tom Brundy points to a newly built irrigation canal on one of the fields at his farm Tuesday, Feb. ...
Associated Press

Southwest farmers reluctant to idle farmland to save water

There is a growing sense that fallowing will have to be part of the solution to the increasingly desperate drought in the West.
19 days ago
A young bison calf stands in a pond with its herd at Bull Hollow, Okla., on Sept. 27, 2022. The cal...
Associated Press

US aims to restore bison herds to Native American lands after near extinction

U.S. officials will work to restore more large bison herds to Native American lands under a Friday order from Interior Secretary Deb Haaland.
19 days ago
(Photo: OCD & Anxiety Treatment Center)...
Sponsored Content by OCD & Anxiety Treatment Center

Here's what you need to know about OCD and where to find help

It's fair to say that most people know what obsessive-compulsive spectrum disorders generally are, but there's a lot more information than meets the eye about a mental health diagnosis that affects about one in every 100 adults in the United States.

Sponsored Articles

(Photo by Michael Matthey/picture alliance via Getty Images)...
Cox Communications

Valley Boys & Girls Club uses esports to help kids make healthy choices

KTAR’s Community Spotlight focuses on the Boys & Girls Club of the Valley and the work to incorporate esports into children's lives.
...
Fiesta Bowl Foundation

Celebrate 50 years of Vrbo Fiesta Bowl Parade magic!

Since its first production in the early 1970s, the Vrbo Fiesta Bowl Parade presented by Lerner & Rowe has been a staple of Valley traditions, bringing family fun and excitement to downtown Phoenix.
(Photo via MLB's Arizona Fall League / Twitter)...
Arizona Fall League

Top prospects to watch at this year’s Arizona Fall League

One of the most exciting elements of the MLB offseason is the Arizona Fall League, which began its 30th season Monday.
Another $237M granted to Honda battery plant project in Ohio