Honda agreed to buy its co-owned EV battery plant in Ohio from LG Energy Solutions as it prepares for an all-new dedicated lineup.
Honda buys US EV battery plant from LG for $2.9 billion
The facility, L-H Battery Company, is part of Honda and LG Energy’s joint venture in the US. Honda and LG announced in October 2022 plans to invest up to $4.4 billion to establish the “Honda EV Hub” in Ohio.
Production was initially expected to begin by the end of 2025 with an annual capacity of 40 GWh, but it was later pushed back until 2026.
Although the facility is still on track to begin producing EV batteries next year, it will now be fully owned by Honda.
LG Energy Solution said on Wednesday that it plans to sell the Ohio EV battery plant to Honda. According to LG’s regulatory filing, the sale is worth 4.22 trillion won ($2.9 billion) and includes the building and other building-related assets.
It does not include the land and equipment, the South Korean battery giant said. The final sale price may change, LG noted, but the deal is expected to close on February 28, 2026.
LG said the move is designed to help improve operational efficiency. By selling the building and assets to Honda, LG is passing along construction costs, a significant portion of the overall investment.
According to The Korea Herald, Honda and LG’s JV will continue to operate the EV battery plant under a lease agreement. The facility is still expected to begin production in 2026.
Top comment by Chris M
I hope Honda commits fully to their electric lineup, but boy the two Honda models have a rear end that's just so excessive. I can easily see the massive rear quarter blind spot on the CRV-type style turning off buyers looking for a practical crossover. The large saloon we've seen elsewhere will be a comically impractical non-starter.
Acura desperately needs competitive vehicles, hopefully the RSX will be one.
Honda will use the batteries to power up its new dedicated EV lineup, starting with the Acura RSX next year. It will be followed by a new SUV and sedan, the first two models from Honda’s 0 Series EV lineup. Unlike the Prologue, which is based on GM’s Ultium platform, Honda’s new EVs will be based on a new dedicated platform.
Honda may also use the plant for energy storage systems. The announcement comes after Ford canceled its EV battery supply deal with LG Energy Solution earlier this month, worth 9.6 trillion won (6.6 billion).
LG Energy is expanding its energy storage business as a safety net after the Trump Administration killed off the $7,500 EV tax credit and other policies designed to boost adoption.
While Honda prepares for an all-new lineup, its current electric SUV is on sale with leases starting under $300 a month and 0% APR financing. If you’re interested in a test drive, use this link to find available Honda Prologue models near you.
FTC: We use income earning auto affiliate links. More.
Comments