Honda amends plan for new production plant in Japan

Honda has decided to make changes to the previously-announced plan to begin operation of a plant in Moka City, Tochigi, Japan, dedicated to production of the next-generation fuel cell module.

The original plan was to utilise part of the land and buildings of a former Honda Powertrain Unit Factory, and begin operation of a dedicated plant to produce the next-generation fuel cell module developed independently by Honda.

Preparation for this project was already underway, with an aim to begin operation of the plan in the fiscal year ending March 31, 2028 (FY2028) with annual production capacity of 30,000 units. However, in light of recent changes in the global hydrogen market environment, Honda has reassessed the plan in the direction to reduce initial production capacity and delay the timing to begin full production.

The original plan had qualified to receive a government subsidy under a project led by the Japanese Ministry of Economy, Trade and Industry (METI) to support the establishment of supply chains consisting of Japanese manufacturing companies in the carbon neutrality area.

Honda has now decided to opt out of the program instead, as its revised plan will no longer fulfil the requirement of starting the operation before the end of the FY2028 with an annual production capacity of more than 20,000 units.