Honda Development and Manufacturing of America announced it will acquire the Ohio battery plant from LG Energy Solution for approximately $2.9 billion. The transaction is structured as a sale‑and‑leaseback, with Honda purchasing the building and associated assets while LG retains a lease to continue operating the joint venture. The deal is expected to close by the end of February 2026.
The purchase expands Honda’s U.S. battery manufacturing footprint and gives the automaker full control over a facility that can produce battery cells and modules. Honda has been pivoting toward hybrid vehicles amid a slowdown in electric‑vehicle demand, and the acquisition is intended to secure a reliable battery supply for both its hybrid and future electric models.
LG Energy Solution said the sale will streamline its operations and provide liquidity as the U.S. battery market cools. The company is focusing on energy‑storage projects and wants to reduce exposure to the uncertain EV market, while the leaseback arrangement allows it to maintain a presence in the Ohio plant without the capital burden of ownership.
The Ohio facility was originally part of a $4.4 billion joint‑venture investment between Honda and LG, with mass production slated for late 2025. The sale excludes the land and equipment, which remain with LG, and the leaseback will keep the joint venture, L‑H Battery Company, operational. The plant’s capacity is designed to support both cell and module production, positioning Honda to increase local content and reduce U.S. import tariffs.
The deal comes as automakers adjust their electrification strategies in response to a cooling U.S. EV market. Ford has recently scaled back its EV plans, and Honda’s move signals a broader industry trend of balancing hybrid and electric investments. By owning the Ohio plant, Honda can better manage supply chain risks and maintain flexibility in a market where demand for fully electric vehicles remains volatile.
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