LG Energy Solution has agreed to sell a factory building and related assets in Ohio to Honda Development and Manufacturing of America for $2.86 billion, the South Korean battery maker said in a regulatory filing. The transaction covers the facility structure and nonland assets, excluding the underlying site and manufacturing equipment.
The move is designed to “improve joint venture operational efficiency,” LG Energy Solution stated. The two companies first announced plans in 2022 for a $4.4 billion joint-venture battery plant in Ohio. According to a person close to the matter, LG Energy Solution does not intend to dissolve the venture or reduce its ownership stake; rather, it aims to streamline operations at the upcoming factory, which is expected to start production next year.
A Honda spokesperson noted that the acquisition of the building assets “has enabled Honda to commit to batteries over the long term, allowing us to flexibly respond to batteries not only for electric vehicles but also hybrid vehicles.”
This sale follows several recent shifts in the EV battery market. Last week, LG Energy Solution announced that Ford Motor had terminated an agreement to purchase EV battery cells valued at about 9.6 trillion won. Ford said it would record a $19.5 billion writedown and cancel several electric-vehicle models amid weaker-than-expected demand.
Separately, SK On, another South Korean battery producer, ended its joint venture with Ford in the U.S. this month. In response to changing market conditions, some domestic battery manufacturers are repurposing assembly lines to supply energy-storage systems for data centers and other facilities.
As automakers reassess their EV strategies, battery suppliers are adjusting partnerships and production plans to remain competitive in a sector facing regulatory shifts and evolving consumer adoption.
Source: Reuters
