Honda has agreed to buy out its co-owned electric vehicle (EV) battery plant in Ohio from LG Energy Solution, reflecting the impact of slower EV demand in the U.S. The facility, known as L-H Battery Company, was part of a joint venture between Honda and LG Energy.
In October 2022, the two companies had announced plans to invest up to $4.4 billion to establish the “Honda EV Hub” in Ohio. Production was originally scheduled to begin by the end of 2025 with an annual capacity of 40 GWh, but this timeline has since been pushed back to 2026. Despite the delay, the plant is still expected to commence battery production next year, now under full Honda ownership.
LG Energy Solution revealed on Wednesday that it plans to sell the Ohio plant to Honda. According to LG’s regulatory filing, the sale is valued at 4.22 trillion won ($2.9 billion) and includes the building and related assets, though it does not cover the land or equipment. LG noted that the final sale price could change, and the transaction is projected to close on February 28, 2026.
LG described the decision as a move to improve operational efficiency. By transferring the building and assets to Honda, the company will pass along construction costs, which constitute a substantial portion of the total investment. Despite the sale, Honda and LG’s joint venture will continue to operate the plant through a lease arrangement.
Honda plans to use the batteries from the Ohio facility for its upcoming purpose-built EV lineup, beginning with the Acura RSX next year, followed by a new SUV and sedan – the first two models from its 0 Series EV portfolio. Unlike the Honda Prologue, which uses GM’s Ultium platform, these new EVs will be developed on a dedicated platform. The plant may also be used for energy storage systems.
The announcement follows Ford’s recent cancellation of its EV battery supply agreement with LG Energy Solution, valued at 9.6 trillion won ($6.6 billion). Meanwhile, LG is expanding its energy storage operations as a contingency after the Trump Administration eliminated the $7,500 EV tax credit and other incentives designed to boost EV adoption.
Honda is simultaneously preparing for its new EV lineup while continuing to sell its current electric SUV, with leases starting under $300 per month and 0% APR financing.
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