Not unlike a handful of other brands wary about electrification, Honda took a while to come around to developing its own EV. Its stint with General Motors to develop and produce the Prologue and Acura ZDX on GM’s Ultium EV platform ended in July 2026, with the project officially dissolved by the end of the year.
The original succession plan for models to follow the Prologue was the Honda 0 SUV and 0 Saloon, and the Acura RSX – all three of which were to be built at Honda’s EV Hub at its Marysville, Ohio, plant. The company has decided this was no longer a viable plan and canceled the upcoming projects in favor of nailing down new tech. The situation also didn’t help the firm when it took a multi-billion-dollar loss to pause its plans. So what exactly is Honda planning?
Honda Doubles Down on Solid-State Tech
Rimac Technology New Solid State BatteryRimac Technology
Honda’s EV Hub was completed and ready to start work on the next generation of Honda electric cars, but due to a change in plans, the company decided to build gas-powered and hybrid vehicles there until further notice. The automaker said in a statement that “flexible production capability” means gasoline, hybrid, and electric vehicles can be built on the same manufacturing lines, suggesting that widespread platform and parts sharing will be central to Honda’s next round of vehicles.
The three vehicles Honda had ready to show were the Acura RSX and Honda’s sedan and SUV duo dubbed the 0. After revealing the 0 Saloon and SUV at the Consumer Electronics Show (CES) in 2024, Acura pulled the sheet off the RSX SUV during Monterey Car Week in 2025. Honda had three new EVs in the pipeline ready to rock at the company’s shiny EV plant, but as of March 2026, that’s no longer the plan.
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Honda is stepping back from its planned EV endeavors to focus all efforts on perfecting solid-state battery chemistry. To recoup the investment in its new plant, the EV Hub was retrofitted, and teams pivoted to working on new battery technology. The total cost of this decision comes to $15.7 billion, something Honda isn’t proud of in the slightest, despite this being the company’s first net loss since its 1957 debut on the Tokyo Stock Exchange. Part of the issue stems from Honda’s partnership with LG Energy Solutions (LGES), which began when the two established the L-H Battery Company to build a pipeline of lithium-ion batteries for fully electric vehicles.
The battery’s side-terminal design and large casing suit EVs best, which doesn’t work for Honda, as it shifts back to hybrids that use smaller batteries. Recently, Honda announced it was now working with QuantumScape, a battery technology company based in San Jose, California, to develop solid-state lithium-metal batteries for its EVs.
A Pivot Back To Hybrids Is The Next Step
Honda Anna Engine PlantHonda
Part of Honda’s plan to recoup as much money as possible is a return to its hybrid strategy. The company was wary about bringing an EV to market when others were pouring cash into EV programs years ago. The last company to jump on the EV train was Toyota, which ramped up EV development with Subaru to bring electric cars to market in 2022. Honda’s first modern EV, developed in conjunction with GM, was a way for the brand to enter the EV game without bearing the brunt of development costs.
Two years ago, it was ready to start development and testing of new EVs made in-house, but that’s since been canned thanks to a multitude of reasons. The company’s joint venture with LGES to produce specific batteries for EV-only vehicles won’t carry over to hybrids due to packaging constraints, and the new technology coming down the pipeline will put Honda at the back of the pack for future EVs. In June, Honda announced it would begin working with another company to develop solid-state batteries, a type of battery that will advance EVs in areas such as charging times and efficiency.
On top of shifting who’s responsible for helping Honda gain a leg up in battery development, the company announced it was canceling plans to build an EV plant in Canada after backing away from its electric powertrain development. In the meantime, Honda intends to refocus its production efforts on hybrid vehicles.
What Models Are On The Way?
Honda 0 Saloon Prototype at CES 2025Honda
Honda recently announced a third-generation Ridgeline set for 2029, and while there’s been no word on powertrains, it’s going out of production at the end of this year because of its aging 3.5-liter V6. If the automaker looks to commit as many models as possible to hybrid-only powertrains, it stands to reason the Ridgeline will be part of its hybrid revolution. The upcoming model Honda has confirmed will be hybrid-only is everyone’s favorite boxy Honda, the Element.
Slated to compete directly against the Ford Bronco Sport, the Element will return to fulfill the same destiny Honda planned for it in the early 2000s. Rugged, small crossovers with go-getter attitudes are all the rage in the US right now, and something small, fuel-efficient, and built by Honda is sure to score points with a younger crowd who remembers the Element for being quirky yet functional beyond belief. If only the five-speed manual carried over, we’d settle for the Element simply returning to shake things up in a drab crossover market.
Over at Acura, the RDX is up for a redesign, which apparently will include the V6 dual-motor hybrid system it revealed in 2025. This will mark the brand’s first hybrid SUV since the MDX Sport Hybrid, which didn’t receive a replacement when the MDX was revamped for 2022. The new hybrid powertrain, with its V6 engine and emphasis on towing and hauling, makes it an excellent candidate for the Ridgeline, Pilot, Passport, and even the Odyssey.
Other Factors That Led Honda To This Point
2024 Honda PrologueHonda
Relaxed emissions standards and the elimination of the $7,500 federal EV purchase incentive slowed new EV sales at an alarming rate. Honda was not the only brand to reconsider its EV plans, but it was the only one actively investing capital to ramp up EV production. GM and Ford have already established EV battery manufacturing sites in the US, in Michigan and Kentucky, and Toyota has a battery manufacturing facility in North Carolina. These brands, with an established presence in the US, were ready to curb tariffs and other economic sanctions on battery technology and systems from China.
Honda was not there yet, and the late shift to bring production to the US and Canada, driven by rising costs, was too little, too late. The technology it dumped money into developing with other companies was already outdated and wouldn’t support the production of current models, pushing its return on investment further down the road. Ford, GM, and Toyota are already producing EVs and hybrids that need batteries, which, despite waning interest in EVs in the US, are still used in popular vehicles thanks to widespread hybrid adoption across popular nameplates.
Honda doesn’t know what the future of the EV market looks like, but the segment remains popular (set to account for 29% of all new car sales by the end of the year), and it would be a missed opportunity not to enter it. But the side effects of waiting to enter have dealt massive financial blows in the form of demand, federal tariffs, and rapid technological advancements. The company’s decision to leapfrog its EV plans to recoup cash and set itself up for success when solid-state chemistry takes center stage seems unconventional. Still, it’s all the company can do right now to keep from taking on more water.
Sources: Honda Newsroom, Automotive Manufacturing Solutions, L-H Battery Company, QuantumScape, International Energy Agency
