South Korea’s LG Energy Solution has agreed to sell the building and fixed-asset components of its Ohio electric vehicle battery plant to Honda Development and Manufacturing of America for ?4.22 trillion ($2.85 billion), according to company disclosures cited by Yahoo Finance. The facility is part of the $4.4 billion battery manufacturing joint venture between LG Energy Solution and Honda Motor that was announced in 2022 and is currently under construction.
The transaction involves only the physical plant assets, not the joint venture itself. Battery production, governance, and offtake arrangements remain governed by the existing JV structure, with LG Energy Solution continuing to operate the facility. Honda, through its U.S. manufacturing arm, will assume ownership of the buildings while maintaining its role as LGES’s strategic partner in battery supply for North American electric vehicles. The deal allows LGES to recover capital tied up in fixed assets while retaining operational control and long-term customer commitments.
LG Energy Solution has used similar asset sales elsewhere to reduce upfront capital tied to manufacturing facilities while keeping long-term operating control. For Honda, the Ohio plant is central to its North American EV plans, with output intended to supply vehicles built in the United States, according to Yahoo Finance.
The transaction comes amid a period of heightened volatility across the broader U.S. energy storage and clean technology landscape.
According to a recent Cleanview analysis tracking project announcements, developers have canceled or delayed more than 79 gigawatts of battery storage projects this year, reflecting a mix of financing pressures, policy uncertainty, and shifting market conditions. The LGES–Honda asset sale, however, does not alter the scope, timeline, or investment framework of their Ohio joint venture, which remains focused on supplying EV batteries to Honda’s U.S. operations.
By Alex Kimani for Oilprice.com
More Top Reads From Oilprice.com