Honda takes full control of Ohio EV battery plant with LG exit

Honda has agreed to buy out its Ohio EV battery plant from LG Energy Solution for $2.9bn, securing battery supply for its upcoming 0 Series electric vehicles. Read the details.

Honda is moving to consolidate control over its electric vehicle supply chain by buying out its jointly operated EV battery plant in the United States from LG Energy Solution. The facility, known as L-H Battery Company, is located in Ohio and was established as part of a partnership between the two companies.

The transaction is valued at 4.22 trillion won, or roughly $2.9 billion. Under the agreement, LG Energy Solution will sell the building and related construction assets to Honda, while the land and production equipment are excluded from the deal. The companies expect the transaction to close by February 28, 2026.

Honda and LG Energy Solution originally announced plans in 2022 to invest up to $4.4 billion in creating what they described as a “Honda EV Hub” in Ohio. Battery production was initially scheduled to begin by the end of 2025 with an annual capacity of about 40 GWh, but the start of operations was later pushed back to 2026 — a timeline that remains in place following the buyout.

Although Honda will fully own the building, the joint venture itself will continue to operate the plant under a lease agreement. LG Energy Solution said the decision is intended to improve operational efficiency by transferring a substantial portion of construction-related costs to its partner.

The Ohio-made batteries are expected to power Honda’s next generation of electric vehicles, starting with the Acura RSX, followed by a new SUV and sedan from the Honda 0 Series. Unlike the current Honda Prologue, which is based on General Motors’ Ultium platform, these upcoming models will rely on a dedicated Honda-developed EV architecture.

Honda has also indicated that the facility could eventually support energy storage systems, reflecting broader shifts in the battery industry. The announcement comes shortly after Ford canceled a major battery supply agreement with LG Energy Solution, as manufacturers reassess EV strategies amid changing demand and evolving US policy support.

For Honda, taking ownership of the Ohio battery plant underscores a longer-term strategy focused on tighter control over critical technologies and supply chains. As the automaker prepares an all-new electric lineup, the move positions it to navigate an increasingly complex and competitive EV landscape.