Honda cancels US EV plans, pivots to energy storage batteries
Honda is switching gears and jumping into the energy storage scene, now making batteries for data centers and power grids instead of just cars.
This move follows a cancelation of its US electric-vehicle plans after electric-vehicle tax credits were cut last year, leading to lower demand.
The batteries, built at Honda's Ohio plant with LG Energy Solution, show Honda adapting quickly to changing market needs.
Energy storage installations up 32%
Energy storage is having a moment: installations jumped 32% this year and are expected to keep climbing, possibly reaching 110 gigawatt-hours per year by the end of the decade (around 2029).
Tesla leads the pack right now, but Honda's shift comes as it restructures after big losses in its electric-vehicle business and aims to catch up in this fast-growing market.