South Korea’s LG Energy Solution said Wednesday it has agreed to sell a factory building and related assets at its Ohio battery site to Honda Development and Manufacturing of America, a move aimed at strengthening long term operations at the joint venture facility.
The transaction is valued at about 2.86 billion dollars and covers the building and certain assets, but not the land or production equipment. LG Energy Solution said in a regulatory filing that the sale is designed to improve how the joint venture operates as production ramps up.
LG Energy Solution said it does not plan to unwind the partnership or reduce its ownership stake. Instead, the asset sale is intended to support smoother operations at the plant, according to a person familiar with the matter. Battery production at the Ohio facility is expected to begin next year.
Honda said the purchase gives it greater certainty around battery supply over the long term. A Honda spokesperson told Reuters that owning the building assets allows the company to commit to battery development not only for electric vehicles but also for hybrid models, offering flexibility as market demand evolves.
The Ohio plant is a key part of Honda’s broader push to localise battery production in the United States while working closely with established cell manufacturers.
The announcement follows a series of adjustments across the auto and battery sectors. Just last week, LG Energy Solution disclosed that Ford Motor had ended a battery supply agreement valued at about 9.6 trillion won. Ford has since said it will take a 19.5 billion dollar writedown and cancel several electric vehicle models.
Read Also: South Korea Triples AI Spending; Qatar Launches MAI Platform
Industry analysts say the moves reflect a broader pullback from aggressive electric vehicle expansion as consumer demand softens and policy signals shift under the Trump administration.
Meanwhile, other South Korean battery firms are also reshaping their US strategies. SK On recently exited its joint venture with Ford, while several manufacturers have redirected capacity toward batteries for energy storage systems used in data centres and industrial facilities.
Despite near term uncertainty in the electric vehicle market, LG Energy Solution and Honda say the Ohio transaction positions their partnership for steady production and long range planning. The companies are expected to provide further updates as the plant approaches its startdate.
