On the Dash:
- Honda is buying LG Energy’s Ohio EV battery plant and related assets for $2.9 billion, with the deal expected to close by February 2026.
- The sale reflects weakening U.S. EV demand and ongoing supply chain challenges for battery makers outside China.
- LG Energy continues to expand its other U.S. production lines and its energy storage business to offset the divestment of the Ohio plant.
Honda is set to buy out LG Energy Solutions’ facilities and other assets from their joint battery plant in Ohio for roughly 4.2 trillion won ($2.9 billion), the companies announced Wednesday. The transaction, scheduled to close by the end of February, is aimed at improving operational efficiency amid a cooling U.S. EV market.
The joint Ohio plant, originally part of a $4.4 billion investment plan in 2022, was slated to begin mass production by the end of 2025. The sale reflects shifting strategies in the automotive supply chain as U.S. EV growth slows.
Meanwhile, LG Energy faces mounting challenges in the U.S. market. For example, Ford recently scrapped a 9.6 trillion won battery deal with LG and ended a separate U.S. venture with SK Innovation, signaling broader retrenchment among automakers outside of China.
LG Energy continues to build two additional production lines in Arizona and Michigan while ramping up its energy storage business to cushion the impact of recent setbacks. The company also faced a rare U.S. immigration raid at its Georgia venture with Hyundai, resulting in the detention of more than 300 South Korean workers.
Industry analysts say Honda’s acquisition gives the automaker greater control over its battery supply amid uncertain EV demand, while LG pivots to streamline operations and focus on storage and other U.S. facilities. The transaction underscores the volatility of the North American EV market for foreign battery makers as federal and state incentives fluctuate and consumer adoption slows.
