LG Energy Solution will transfer ownership of factory buildings and certain assets at its Ohio battery venture to Honda Motor for ₩4.2 trillion ($2.86 billion), restructuring the partnership as the Japanese automaker recalibrates its electrification strategy.
The transaction, scheduled to close by late February, excludes land and production equipment from the joint facility in Fayette County, according to a regulatory filing Wednesday. The Korean battery maker said the sale aims to enhance operational efficiency while maintaining its ownership stake in the venture.
Honda and LG announced the Ohio project in 2022 with combined investments projected at $4.4 billion. The plant, spanning over 2 million square feet with 40 gigawatt-hours of annual capacity, is expected to begin mass production next year.
The arrangement grants Honda greater control over battery supply as the company shifts resources toward hybrids. Honda’s CEO Toshihiro Mibe acknowledged earlier this year that hybrid vehicles would constitute the core of the company’s business through 2030, with EV adoption timelines pushed back by roughly five years in the U.S. market.
A Honda spokesperson indicated the acquisition enables the company to address battery needs across both electric and hybrid vehicle lineups. The automaker has invested over $1 billion to establish flexible manufacturing in Ohio capable of producing gasoline, hybrid, and battery-electric models on shared assembly lines.
