Honda Motor has started producing batteries for artificial intelligence (AI) data centre energy storage systems (ESS) at a US facility in Ohio, originally intended for electric vehicle (EV) battery manufacturing.

Production of ESS batteries began at the Ohio facility earlier this month in partnership with South Korea's LG Energy Solution.

The batteries store energy during peak solar generation and provide it during outages or periods of high demand.

Honda and LG Energy Solution announced the joint venture in 2022 with plans to produce lithium-ion EV batteries.

According to Nikkei Asia’s report, the plant was completed in 2025, at a time when the EV market had cooled following the revocation of US federal tax incentives on EV purchases under US President Donald Trump.

Honda later revised its electrification plans and stopped development of three US-produced models, including one under its Acura luxury brand.

That left the Ohio plant without a role in EV supply.

The company bought the plant buildings and assets from LG Energy for $2.85bn.

It plans to start producing hybrid vehicle batteries there in 2028 and to alter output between ESS and hybrid products according to electrification trends.

Honda now obtains hybrid batteries from a Toyota Motor facility in North America.

Moving production in-house is expected to lower costs.

The automaker plans to introduce 15 hybrid models mainly in North America by fiscal year 2029.

The shift comes as other US automakers also move into energy storage.

General Motors changed a production line at its Tennessee battery plant to ESS output, brought back some previously laid-off workers, and plans to make sodium-ion batteries in Michigan as early as 2028.

Ford Motor set up a dedicated ESS subsidiary in May to supply power companies and data centres.

It also plans to repurpose a Kentucky EV battery factory previously run with South Korea's SK On, after that joint venture ended in December because of weak demand.