Honda, LG move toward EV battery plant, jobs addition

FILE - The Honda Marysville Auto Plant is shown on March 18, 2020, in Marysville, Ohio. Ohio's privatized economic development office has finalized an agreement with Honda Wednesday, Feb. 8, 2023, to infuse $237 million into development of a massive battery plant project that the Japanese automaker plans to use to turn the state into its North American electric vehicle hub. (AP Photo/Tony Dejak, File)
FILE - The Honda Marysville Auto Plant is shown on March 18, 2020, in Marysville, Ohio. Ohio's privatized economic development office has finalized an agreement with Honda Wednesday, Feb. 8, 2023, to infuse $237 million into development of a massive battery plant project that the Japanese automaker plans to use to turn the state into its North American electric vehicle hub. (AP Photo/Tony Dejak, File)

COLUMBUS, Ohio -- Economic development officials in Ohio have finalized a $237 million agreement with Honda to develop a battery plant near its capital city.

Teaming with LG, the Japanese automaker said it plans to make the state its North American electric vehicle hub. JobsOhio posted details of the package Wednesday. The deal include a $140 million economic development grant for the facility, a $10 million workforce grant and $87 million to retool existing facilities in the state.

The money, paid over the next 10 years, comes atop about $156.3 million in tax incentives and infrastructure improvements the state pledged to the project. Officials say the battery plant will be located in rural Fayette County, about 40 miles southwest of Columbus.

Honda and South Korea-based LG have agreed to create 2,527 new jobs and more than $140 million in new payrolls, including 2,200 jobs through the new Honda-LGES battery plant and 327 jobs via Honda's facility-retooling efforts. Honda has said the company is investing $700 million and adding 300 jobs at three of its existing Ohio factories to prepare them to start making EVs and components.

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

  photo  FILE - A Honda logo is shown at the North American International Auto Show in Detroit, Monday, Jan. 14, 2019. Honda says, Tuesday, Oct. 11, 2022, it will build a $3.5 billion joint-venture battery factory in rural southern Ohio and hire 2,200 people to staff it as it starts to turn the state into its North American electric vehicle hub. The company also 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. (AP Photo/Paul Sancya, File)
 
 
  photo  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. Honda says it will hire 2,200 people to staff the factory as it starts to turn the state into its North American electric vehicle hub. (AP Photo/Samantha Hendrickson)
 
 
  photo  Republican Gov. Mike DeWine, state legislators Honda officials announce 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. Honda says it will hire 2,200 people to staff the factory as it starts to turn the state into its North American electric vehicle hub. (AP Photo/Samantha Hendrickson)
 
 
  photo  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)