Honda Motor Co. is consolidating its electric vehicle strategy in North America by acquiring full ownership of its Ohio battery production facility from LG Energy Solution for approximately $2.9 billion.
The plant, located near Jeffersonville, was originally part of a joint venture designed to establish a major U.S. EV battery hub with an annual capacity of around 40 GWh, although full-scale production has been delayed until 2026.
Under the terms of the agreement, Honda will purchase the factory buildings and structural assets from LG, while the joint venture continues to operate the facility under a lease arrangement until the transaction closes, expected by February 2026. The move is intended to give Honda greater control over production timelines and integration with its dedicated EV architecture, including the upcoming 0 Series models set to launch the same year.
LG Energy Solution frames the sale as part of broader operational adjustments amid a cooling U.S. EV market, where demand pressures and shifting competitive dynamics are prompting battery manufacturers outside China to recalibrate their investments. For Honda, acquiring the plant outright ensures more direct oversight of one of the most critical components in EV supply chains, batteries, and positions the company to manage production efficiency and costs as it scales its electric portfolio.
The Ohio facility represents more than a manufacturing site; it signals a strategic pivot in Honda’s transition from internal combustion engines toward electrification in the United States.
