Honda Shifts Strategy: Data Centers Instead of EVs

22:21 / 01.07.2026·25·Technology

Japanese auto giant Honda has decided to pivot its business direction in an unexpected way. The company has begun directing batteries produced at its US plants toward data centers and energy storage systems rather than electric vehicles. This move is linked to instability in the global automotive market and the increasing demand for technological infrastructure, according to Techcrunch.com reports .

According to Nikkei Asia, Honda started producing batteries intended for energy storage systems this week. This change comes three months after the company canceled its EV programs in the US. Batteries originally planned for production at the Ohio plant in partnership with LG Energy Solution will now serve server rooms instead of roads.

Market Changes and Economic Reasons

The primary reason for Honda's decision was the decline in demand for EVs in the US market. The cancellation of government tax incentives dampened consumer interest in this type of transport. As a result, the company announced a loss of $15.7 billion in the last fiscal year due to strategy revisions and structural changes.

Despite this, Honda did not dissolve its joint venture with LG Energy. On the contrary, following competitors like Tesla, Ford, and GM, it realized that the battery business itself is a separate profitable sector. Currently, the stationary energy storage market is growing by 32% annually, opening new opportunities for automakers.

Prospects of Energy Storage Systems

According to SEIA and Benchmark Minerals reports, 9.7 GWh of energy storage systems were installed in the first quarter of this year. This amount of batteries could have equipped approximately 120,000 EVs. Experts predict that the market volume will triple by the end of the decade.

Ensuring the continuous operation of data centers;
Stabilizing electrical grids;
Efficient use of solar and wind energy;
Storing reserves during periods of low energy prices.

This direction is not only promising but extremely profitable. For example, Tesla earns up to 30% gross profit from its Megapack and Powerwall devices, which is twice as much as the profit from car sales. Honda aims to join this high-margin chain.

In the context of Uzbekistan, battery reserves for data centers and renewable energy sources are also a relevant topic. The entry of major brands like Honda into this field will undoubtedly contribute to the reduction in cost and popularization of energy storage technologies. Although the company has stepped back slightly from the EV market, it is striving to maintain its place in the global energy transformation.