Honda throws USD 3 billion to buy US battery factory wading EV⚡
Honda was on a major path in the electric vehicle era when it decided to acquire a battery plant for electric vehicles in the United States from LG Energy Solution for nearly $3 billion. The plant, located in Ohio, was originally a joint venture between the two sides under the name L-H Battery Company and was part of the "Honda EV Hub" project, which was placed as a manufacturing and development hub for EV technology for the North American market.
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The plant project starts from 2022 with a total investment plan of up to $4.4 billion. Production was originally expected to start late 2025 but was postponed to 2026. However, the plant is still on track to build according to the plan and aims to have a capacity of around 40 gigawatt hours per year.
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What changed was the ownership structure, when LG announced the sale of the factory building and related assets to Honda, excluding land and machinery equipment, the final price of which could be adjusted before the deal closes in late February 2026.
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This sale was not a sign of LG's retreat, but of financial balancing. The company clearly stated that it wanted to reduce the burden of construction costs and increase operational efficiency. LG also faced significant tremors after Ford canceled a major battery supply contract, forcing the company to accelerate diversification. Many directions began to open up, especially the energy storage system business for renewable power plants and data centers, which was growing with global data waves and AI.
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On the one hand, Honda is aggressively moving into the EV era. Holding more factory ownership is not just an accounting deal, it is controlling the heart of the electric train is batteries. Honda plans to use batteries from this factory in its own new electric cars, from the new Acura models to launch next year, to SUVs and sedans under the "Honda 0 Series" family, an EV line-up developed on Honda-specific platforms, different from the Honda Prologue that relies on a technology basis from General Motors.
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Looking at the big picture, the deal reflects both companies' adaptation to the new landscape of the electric car industry; Honda wants to stand more on its own legs, take control of its core supply chain and technology in the US, to embrace local regulation and fierce competition, while LG chooses to loosen some of its investment load, preparing capital and mobility for new businesses in a world where the EV market is growing as unevenly as the previous period.
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Cr: electrek
