Even Honda is pivoting to data centers
Key takeaways
- Honda this week began production of batteries destined for energy storage systems, according to a report from Nikkei Asia.
- The automaker’s shift toward energy storage comes three months after Honda canceled its EV programs in the U.S.
- Honda’s pivot comes as demand for EVs in the U.S. remains soft following the GOP’s cancellation of tax credits, which were intended to spur EV and battery production in the U.S.
Honda this week began production of batteries destined for energy storage systems, according to a report from Nikkei Asia. The milestone makes Honda the latest car company to dive into the red-hot energy market.
The automaker’s shift toward energy storage comes three months after Honda canceled its EV programs in the U.S. Batteries for the EVs were slated to be made at a factory in Ohio, which Honda operates under a joint venture with LG Energy Solution. Now, those cells are headed to data centers instead of driveways.
Honda’s pivot comes as demand for EVs in the U.S. remains soft following the GOP’s cancellation of tax credits, which were intended to spur EV and battery production in the U.S. Sales of new EVs remain down year-over-year, in part because consumers pulled forward their purchases to take advantage of the tax credits, which disappeared last September.