News, 29 December 2025
Honda Motor Co. is making a strategic play to secure its electric future by acquiring full ownership of a key EV battery production facility in Ohio from LG Energy Solution in a deal valued at approximately $2.9 billion.
The facility located near Jeffersonville, Ohio was originally developed as part of a joint venture between Honda and LG Energy Solution under a multi-billion-dollar plan to build a major U.S. battery hub. Construction of the plant was intended to support Honda’s North American EV ambitions with an annual output capacity of around 40 GWh, though full mass production has been delayed until 2026.
Under the new agreement, Honda will purchase the factory buildings and related structural assets from LG’s joint project, while the joint venture continues to operate the facility under a lease structure. The transaction is expected to close by February 2026.
For Honda, this move signals a deeper commitment to electrification. By consolidating control over the battery plant, the automaker can better align production with its upcoming dedicated EV architecture — starting with new models scheduled to debut in 2026, including vehicles from its 0 Series lineup.
LG Energy Solution says the sale is part of a broader effort to improve operational efficiency amid a shifting U.S. EV market landscape, where demand has softened and battery makers outside China are reevaluating their strategies.
The Ohio facility is more than just a production site it represents a pivotal step in Honda’s transition from traditional combustion engines to a fully electric portfolio in the United States. As EV momentum evolves and supply chain realities change, this acquisition gives Honda greater control over one of the most critical components of future mobility: battery manufacturing.
Compiled using AI
