COLUMBUS, Ohio (HPD) — Ohio will offer $156.3 million in tax incentives and infrastructure improvements to Honda to build a large battery factory the automaker sees as crucial to bringing its hub to the state. manufacturing electric vehicles for North America.
Officials say the factory, a joint venture with South Korea’s LG Energy Solution, will be located 40 miles (64 kilometers) southwest of Columbus, the state capital.
Of the $85 million allocated for infrastructure, $75 million will be for improvements to running water and electricity, and the rest to improve state and local roads, officials said Wednesday.
The rest will be for tax incentives over 30 years, but the package does not include local tax incentives.
Honda said in a statement Tuesday that it will invest $3.5 billion in the factory in rural southern Ohio and create 2,200 jobs.
It also announced that it will invest 700 million dollars and create 300 jobs in three of its factories in Ohio so that they start manufacturing electric vehicles and auto parts.
Total investment in the battery plant could reach $4.4 billion, according to officials.