Honda is finalizing plans for a new U.S. assembly plant, and Ohio is reportedly the automaker’s top location pick.

Honda has hit a bit of a rough patch. Earlier this year, it canceled the development of three EVs that were slated to be built in the United States and projected a massive financial hit for 2026, citing the volatile U.S. EV market, tariffs, and changing vehicle tastes in China.

But Honda has big plans to bounce back within the next few years, and a potential eighth North American assembly plant might make the company’s ambitious production goals more attainable.

The Japanese automaker currently has seven assembly plants in North America. Four of those are located in the U.S., with two plants in Ohio, one in Indiana, and one in Alabama. If the transaction gets completed, it looks like an eighth plant would add another tally to Ohio.

Honda CEO Toshihiro Mibe first mentioned the brand was weighing another plant in July. Now, a new Automotive News report claims Honda is currently in the final stages of negotiations, and Ohio is the brand’s top contender. If an agreement is made, the new plant could begin vehicle production by 2030.

The proposed third Ohio plant would specialize in hybrid vehicles, and Honda has more than enough in the pipeline to keep the factory busy. In May, the automaker announced a plan to introduce 15 models globally by 2030 and placed a heavy emphasis on its next-generation hybrid system.

Most of these new models will be aimed at North America, which is Honda’s most profitable market.

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