Honda has started producing batteries for stationary energy storage systems, redirecting cells originally intended for electric vehicles toward data centers and other power applications. The production shift follows the automaker’s decision to cancel three EV models planned for North America.
The batteries are being produced at an Ohio factory established through Honda’s joint venture with LG Energy Solution, according to TechCrunch, citing Nikkei Asia. The facility was initially designed to supply lithium-ion cells for Honda EVs manufactured in North America.
Honda and LG Energy Solution originally committed about $4.4 billion to the plant, which was designed for annual production capacity of approximately 40 gigawatt-hours. Their official joint venture announcement said all cells would initially be supplied to Honda’s North American EV factories.
EV Restructuring Leaves Battery Capacity Available
Honda announced in March that it had cancelled the development and launch of three EVs planned for production in North America. The company said in its official update that it was reassessing its electrification strategy after changes in market conditions.
The restructuring is expected to result in expenses and losses of up to 2.5 trillion yen, or about $15.7 billion, over several years. Weaker EV demand in the United States and increased competition in China contributed to Honda’s decision to reduce its planned electric vehicle investments.
Honda has maintained its partnership with LG Energy Solution despite the change in vehicle plans. Redirecting part of the factory’s output allows the companies to use available production capacity while demand grows for batteries that can store electricity for data centers and power grids.
U.S. Energy Storage Installations Reach a Record
The U.S. installed 9.7 gigawatt-hours of energy storage capacity during the first quarter of 2026, up 32% from a year earlier, according to an official report from the Solar Energy Industries Association. It was the strongest first quarter recorded by the sector.
Battery systems can provide backup electricity to data centers and help grids manage changes in supply and demand. They can also store power generated by wind and solar projects for use when production falls or electricity consumption rises.
SEIA and Benchmark Mineral Intelligence expect more than 610 gigawatt-hours of storage to be installed across the United States by 2030. Other automakers, including General Motors and Ford, have also redirected battery manufacturing resources toward stationary energy storage as EV demand has weakened.
Featured image credits: Roboflow Universe – nattapornudoms
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