Honda Motor Co. agrees to buy LG Energy Solution's Ohio battery plant assets for about $2.9 billion as US EV slowdown impacts supply chain, Bloomberg reports—JV production on track for late 2025.
Honda Motor Co. is set to purchase LG Energy Solution Ltd.'s facilities and assets in their joint Ohio electric-vehicle battery plant for approximately 4.2 trillion won ($2.9 billion), according to a Bloomberg report. The transaction, involving a Honda US unit, is slated for completion by the end of February 2026.
The move reflects ongoing challenges in the US EV market, where demand has cooled, prompting adjustments across the supply chain. The joint venture, announced in 2022 with a planned $4.4 billion investment, aims for mass production to begin by late 2025, powering Honda and Acura EVs in North America.
LG Energy Solution stated in a regulatory filing that the sale would enhance operational efficiency. The companies plan to maintain the JV's production schedule, with potential expansion into energy storage systems.
This development follows recent industry shifts, including Ford's cancellation of a major battery supply deal with LG. South Korean battery suppliers face a tougher outlook as EV adoption slows outside China.
Suhail Gulati
Suhail Gulati is the founder of ElecTree and an economist by training. He holds a Master's degree in Economics from the Delhi School of Economics and has worked in credit, retail banking, and financial stress testing at Barclays and American Express. He founded ElecTree in 2023 — building it into India's dedicated platform for 4-wheeler EV data, sales analysis, and original reporting. His work sits at the intersection of economic analysis and electric mobility — bringing a banker's rigour to a sector that deserves it.