Originally established as a joint venture between the two companies in 2022, the facility, operated under the name L-H Battery Company, was intended to be a shared cornerstone of Honda’s electric transition in the U.S. Now, with full control of the plant’s infrastructure, Honda is repositioning itself to independently manage its EV battery production, a critical component in its shift to dedicated electric platforms.
The Ohio facility is part of Honda’s broader “EV Hub” initiative, which was launched with a joint $4.4 billion investment. Although production at the site was initially slated for late 2025, it has since been delayed to 2026, with a projected annual capacity of 40 GWh once operational. The buyout reflects a growing trend among automakers to internalize battery supply chains and secure more predictable control over production timelines.
$2.9 Billion Deal Gives Honda The Keys To The Battery Hub
Honda is acquiring LG’s share of the battery facility, including the building and related structural assets, for 4.22 trillion won (approximately $2.9 billion). The South Korean firm disclosed the transaction in a regulatory filing, noting that the sale does not include land or equipment. The deal is expected to close by February 28, 2026, although the final amount may vary, according to LG Energy Solution.
By taking over the plant, Honda is also absorbing the bulk of construction-related costs, a significant portion of the original joint investment. LG stated the divestment aims to improve its operational efficiency. While ownership of the building will change hands, the two companies will continue operating under a lease agreement, allowing the facility to remain active within the framework of the original joint venture.
The Ohio site, located in proximity to Honda’s existing U.S. manufacturing operations, is positioned as a central pillar in the company’s electric transformation. According to The Korea Herald, it will still begin producing batteries in 2026, with no change expected to the planned output capacity.
Batteries To Power Honda’s In-house EV Architecture
Once operational, the Ohio battery plant will supply cells for Honda’s new EV lineup, beginning with the Acura RSX and followed by two additional models: an SUV and a sedan under the company’s upcoming 0 Series. These vehicles will be built on a fully dedicated platform, developed internally by Honda, and separate from its previous electric offerings.
This marks a departure from Honda’s previous reliance on General Motors’ Ultium platform, which was used to underpin the Honda Prologue. The 0 Series represents Honda’s effort to create a distinct identity in the EV market with vehicles optimized from the ground up for electric performance and efficiency.
The company previewed the new models at CES 2025, where prototypes of the saloon and SUV versions were displayed. The batteries from the Ohio plant are expected to serve as the backbone of the new architecture, ensuring a streamlined supply of high-capacity energy units tailored specifically to Honda’s EV engineering.
LG Energy Shifts Focus After Ford Deal Collapse
While Honda consolidates its battery production, LG Energy Solution is adjusting its strategy in response to changing industry dynamics. The company’s decision to exit its ownership role in the Ohio plant follows a significant blow: the cancellation of a $6.6 billion EV battery supply deal with Ford earlier this month.
According to LG, the sale of its stake in the Honda plant is part of a broader effort to rebalance its investments and explore new opportunities, most notably in energy storage. With recent shifts in U.S. federal policy, including the removal of the $7,500 EV tax credit under the Trump administration, battery makers have been seeking alternative growth avenues amid a more volatile market landscape.
LG’s decision to lease the Ohio facility back to the joint venture suggests it still sees value in maintaining a foothold in the U.S. battery market, even as it moves toward a leaner, more diversified operational model.
As Honda pivots to full EV independence and prepares to introduce its 0 Series lineup, the company continues to offer its current electric model, the Prologue, which remains available with leases starting under $300 a month and 0% APR financing.
