Honda starts building data center batteries at plant meant for canceled EVs

Honda has started producing batteries for data center energy storage systems at an Ohio plant originally built to make cells for electric vehicles. The company canceled those EVs roughly three months ago, Nikkei Asia reports.

What happened to the Ohio plant

Honda originally designed the Ohio plant to produce battery cells for its lineup of electric vehicles.

• The plant was built specifically to produce EV batteries
• The company canceled those EV models about three months ago
• Batteries designed for cars now go into energy storage systems for data centers
• Nikkei Asia reported the news
• Nikkei Asia ties the move to a decision Honda made in March 2026

Why car batteries ended up in data centers

Canceling the EV models left Honda with ready production capacity and a finished battery cell chemistry, but no vehicles to put them in. Instead of shutting down the line, the company redirected output to energy storage systems for data centers, a segment where demand is surging as infrastructure for training and running AI models expands. Nikkei Asia ties the move to a broader strategy overhaul at Honda that began in March 2026.

Data centers and demand for energy storage

The buildout of data centers for training and inference of large language models has sharply increased global demand for electricity and energy storage. Utilities and data center operators are increasingly turning to industrial battery makers, including automakers that already run mature battery cell lines, to add storage capacity near server clusters faster. Honda's decision to shift an existing battery line from cars to data centers fits that pattern: companies with EV production capacity find themselves well placed as demand moves from vehicles to AI infrastructure.

What canceling EV models means for Honda's strategy

Canceling an EV model is a rare and expensive call for an automaker: by the time a model is scrapped, money has usually already gone into development, testing, and preparing the production line. Rather than mothballing the Ohio plant, Honda repurposed it to make batteries for another growing market. That suggests the company wants to recoup those costs rather than write them off entirely.

What it means

Honda's pivot from EVs to data center batteries shows how demand for power-hungry AI infrastructure is already reshaping production priorities at major industrial companies, sometimes faster than the original automotive projects those facilities were built for can progress.

Frequently asked questions

What does Honda's Ohio plant make now?

The plant, originally built to make battery cells for Honda's canceled EV models, now produces batteries for data center energy storage systems, Nikkei Asia reports.

When did Honda cancel the EV models the plant was built for?

According to Nikkei Asia, Honda canceled those EV models roughly three months before it began producing data center batteries, and the change is tied to a decision the company made in March 2026.