Honda announces major EV and battery production investment in the US
Honda announced today a major investment in producing electric vehicles and batteries in the US. The company is the latest automaker to take that route in order to comply with requirements linked to the new EV tax credit.
The goal is to turn Ohio into Honda’s “EV Hub.”
It doesn’t sound like the investment changes Honda’s plan to launch its first EV in the US – the Prologue – in 2024 through a partnership with GM, its first EV built from the ground up in 2026.
But now this new electric vehicle coming in 2026 is going to be produced locally.
There are two major parts to this announcement today. First, Honda is investing $700 million in three separate Ohio plants to retool for electric vehicle production:
The announcement, held 45 years to the day after Honda announced its first production facility in Ohio — October 11, 1977 — will transform Honda’s Marysville Auto Plant (MAP), East Liberty Auto Plant (ELP) and Anna Engine Plant (AEP) for the electrified future, including the creation of over 300 new jobs. Honda plans to begin production and sales of Honda EVs in North America in 2026, based on its new Honda e:Architecture. The $700 million re-tooling will enable AEP associates to produce the battery case, to be combined with the battery modules from the JV plant on a sub-assembly line at MAP, with the complete battery unit then installed in EVs built by associates at both MAP and ELP.
The second part of the announcement is a joint venture between Honda and LG Energy Solutions to build a new battery factory in Fayette County, Ohio:
Honda will obtain the battery modules from a new joint venture (JV) between Honda and LGES, subject to customary closing conditions, including regulatory approvals. That JV production facility represents a commitment to invest $3.5 billion in Fayette County, Ohio, and will employ 2,200 associates, who will produce pouch-type batteries to be provided to Honda plants for EV production.
Construction is expected to start early next year and should be completed by the end of 2024.
The goal is to establish the production of “advanced pouch- type, Li-ion cells” with a total annual capacity of 40 GWh.
Electrek’s Take
Like many similar announcements we have seen in the last few months, this is likely driven by the requirements to have local EV assembly and battery production to obtain the federal tax credit for electric vehicles.
This is a significant investment from Honda, but as I discussed in my last post on their EV timeline in North America, it might still be too little too late in the case of the Japanese automaker with only two models in the US by 2026, with one of them using GM’s technology.
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Shares of USA Rare Earth jumped in extended trading Thursday, after CEO Barbara Humpton told CNBC that the rare earth miner is “in close communication” with the White House.
Humpton’s comment comes after the Trump administration took a 5% equity stake in Lithium Americas this week. The Defense Department took a 15% stake in rare earth miner MP Materials in July.
“We are in close communication with the administration,” Humpton told CNBC’s Morgan Brennan when asked whether USA Rare Earth was interested in a deal with the Trump administration.
USA Rare Earth stock year to date.
USA Rare Earth shares were last up about 8% after hours. Its stock gained 23% in regular trading Thursday and has nearly doubled this year.
“This is a field where it will not be a zero sum game,” Humpton said of the rare earth supply chain. “It’s going to take a lot of players to build out this marketplace.”
USA Rare Earth is developing a mine in Sierra Blanca, Texas, and a magnet production facility in Stillwater, Oklahoma. Humpton said she supports the Trump administration’s deals with MP and Lithium Americas.
“What we’re doing is keeping the administration informed of our own plans,” she said.
The adminstration has said it is making the investments to help support the industry and break U.S. dependence on China.
Environment
Tesla applies for patent to make Cybertruck look even more ridiculous but more efficient
Tesla has applied for a new patent that would make the Cybertruck look even more ridiculous than it already does, but it would also make towing more efficient.
The Cybertruck is one of, if not the most, polarizing vehicles of all time, and its design is primarily to blame.
Much of the design is due to the use of stainless steel panels and the attempt to make pickup trucks more aerodynamically efficient.
Tesla has managed to improve on the drag coefficient of the average pickup truck.
However, it doesn’t help much with towing a trailer, which is going to catch a lot of that drag.
Tesla has now applied for a new patent on a device that would help push wind over a trailer towed by the Cybertruck.
The American automaker wrote in the abstract of the patent application:
An inflatable aerodynamic deflector to reduce drag and enhance efficiency. Constructed from drop stitch material, it forms one or more air chambers between parallel skins. The component includes a pressure regulation mechanism and diverse attachment interfaces such as rail systems, magnetic fasteners, and quick disconnect clips, distributed along the vehicle for secure mounting. This component acts as an aerodynamic deflector, optimizing airflow around conveyances, especially combination vehicles like tow vehicles and trailers.
In short, Tesla is working on an inflatable device that could sit on the bed of the Cybertruck and rise to close the air gap between the truck, thereby extending the angle of the windshield over the trailer.
Here are some of the drawings from the patent application
Electrek’s Take
To be fair, companies often apply for patents on products that they don’t have concrete plans to bring to production, and this could easily be the case here.
That’s especially true for the Cybertruck.
The program is so much smaller than Tesla anticipated, and with smaller volumes, it makes less sense to launch accessories.
That said, I’m pro everything that makes driving more efficient, regardless of whether it makes a vehicle silly.
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The 2026 Hyundai Kona Electric lineup will be offered in a single trim, but at least it’s the most affordable one.
Here’s the new 2026 Hyundai Kona Electric lineup
With the IONIQ 5 stealing the spotlight, Hyundai is downsizing the 2026 Kona Electric to just one trim — the base SE model.
Hyundai didn’t provide prices, but the 2025 Hyundai Kona Electric SE was the brand’s most affordable EV, starting at just $32,975. The SEL, Limited, and N Line trims will not be offered for the 2026 model year.
In another blow, Hyundai is also dropping the Long Range battery, meaning the 2026 Kona Electric will only be available with the Standard Range battery.
The Long Range 64.8 kWh battery offers a driving range of up to 261 miles, while the Standard Range 48.6 kWh battery delivers a driving range of just 200 miles. The only other change is that the SE trim will now include a larger console tray.
With new models arriving, like the 2026 Nissan LEAF and the 2027 Chevy Bolt EV, the Kona Electric will no longer be one of the few EVs starting under $35,000.
Nissan claims the 2026 LEAF “has the lowest starting MSRP for any new EV currently on sale in the US” at just $29,990. The new LEAF also offers significantly more range, with over 300 miles, and features a NACS port for recharging at Tesla Superchargers.
While it’s cutting the Kona Electric lineup, Hyundai appears to be focused on its top-selling EV for 2026, the IONIQ 5.
Following the expiration of the federal EV tax credit, Hyundai reduced prices on the 2026 IONIQ 5 by up to nearly $10,000 on certain trims. The 2026 IONIQ 5 now starts at just $35,000. It’s also extending the $7,500 credit for 2025 models.
Is the Kona Electric on its way out with the IONIQ 5 now available for about the same price? Either that, or Hyundai will have to cut prices on the Kona EV to stay competitive.
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