Honda has begun producing energy storage batteries at its Ohio factory, originally built for a now-cancelled EV programme that caused a $16 billion write-down. The batteries are being redirected to data centres instead. Honda operates the plant under a joint venture with LG Energy Solution, having bought out LG's stake for nearly $3 billion. The pivot mirrors moves by Ford and GM, who are also repurposing EV battery capacity for stationary storage. US stationary battery installations hit a Q1 2026 record of nearly 10 GWh, up 32% year over year, with SEIA projecting 110 GWh annually by decade's end. Tesla currently leads the market with ~30% gross margins on energy storage, roughly double its automotive margins.
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