Honda Acquires Ohio EV Battery Plant for Nearly $3 Billion

Honda Motor Co. 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 acquisition marks a significant step as Honda gears up for an all-new dedicated EV lineup.

The facility, known as the L-H Battery Company, was established as a joint venture between Honda and LG Energy Solutions. In October 2022, both companies announced plans to invest up to $4.4 billion in creating what they termed the “Honda EV Hub” in Ohio. Production at the plant was initially slated to commence by the end of 2025 with an anticipated annual capacity of 40 GWh, although the timeline has since shifted to 2026.

LG Energy Solutions confirmed on Wednesday that it would sell the Ohio facility to Honda as part of a strategy to enhance operational efficiency. The sale, valued at 4.22 trillion won, incorporates the building and related assets but excludes land and equipment. LG noted that while the final sale price may be subject to adjustments, the transaction is expected to be finalized by February 28, 2026.

Despite the ownership change, the joint venture will continue to operate the plant under a lease agreement, ensuring that production remains on track for its planned start date in 2026. The batteries produced at this facility will be integral to powering Honda’s upcoming dedicated EV lineup, which will debut with the Acura RSX next year. Following this model, Honda plans to introduce an SUV and a sedan as part of its new 0 Series EV lineup.

Unlike the Prologue, which utilizes General Motors’ Ultium platform, Honda’s forthcoming electric vehicles will be built on a proprietary platform designed specifically for their new offerings. Additionally, the plant may be utilized for energy storage systems, diversifying its operational capabilities.

This announcement follows Ford’s recent cancellation of a substantial EV battery supply deal with LG Energy Solutions, valued at 9.6 trillion won. As LG Energy expands its energy storage business, the company aims to bolster its position in the market following changes in U.S. EV tax incentives.

While Honda prepares its new EV lineup, the company continues to offer its current electric SUV, with leasing options starting below $300 per month and attractive 0% APR financing. Interested customers can explore available Honda Prologue models through the company’s website.

Peter Johnson, a seasoned analyst covering the automotive industry’s transition towards electric vehicles, emphasizes the importance of these developments in shaping Honda’s future strategy. With a keen interest in EVs, Johnson’s insights reflect the growing momentum within the sector as manufacturers adapt to changing market demands.