Honda Acquires EV Battery Plant in Ohio for $2.9 Billion

Honda has finalized an agreement to acquire its co-owned electric vehicle (EV) battery plant in Ohio from LG Energy Solutions for approximately $2.9 billion. This move is part of Honda’s strategy to launch a new dedicated EV lineup, marking a significant shift in the company’s manufacturing capabilities.

The facility, known as the L-H Battery Company, was originally established as a joint venture between Honda and LG Energy. In October 2022, the two companies announced plans to invest up to $4.4 billion in the “Honda EV Hub” in Ohio. Initially, production was slated to begin by the end of 2025, but this timeline has been adjusted to 2026.

As part of the transaction, LG Energy Solutions confirmed that it would sell the Ohio plant, including the building and related assets, although it will retain ownership of the land and equipment. The final sale price may be subject to change, but the deal is expected to close on February 28, 2026. LG’s decision to sell aims to enhance operational efficiency by transferring construction costs to Honda, thereby streamlining their investment in the facility.

The partnership will persist under a lease agreement, allowing LG and Honda’s joint venture to continue operating the battery plant. Production is still anticipated to start in 2026, and Honda plans to utilize the batteries produced there for its new dedicated EV models. The first vehicle in this lineup will be the Acura RSX, set to debut next year, followed by a new SUV and sedan, which will be the inaugural models of Honda’s 0 Series EV lineup. Notably, these new vehicles will be built on a dedicated platform, distinguishing them from the Prologue, which is based on General Motors’ Ultium platform.

In addition to serving Honda’s EV needs, the plant may also be adapted for energy storage systems, further diversifying its utility. This announcement follows a recent development in the industry, where Ford cancelled a ₩9.6 trillion (approximately $6.6 billion) EV battery supply agreement with LG Energy Solutions, prompting LG to expand its energy storage business as a precautionary measure.

As Honda gears up for its new lineup, the company’s current electric SUV is available for lease, with starting prices under $300 per month and financing options at 0% APR. Interested consumers can explore available Honda Prologue models locally.

This strategic acquisition underscores Honda’s commitment to transitioning towards electric vehicles, reflecting a broader industry trend as automakers increasingly focus on sustainable technologies.