Honda Takes the Keys
Honda is stepping deeper into the EV world with a decisive play: buying out its U.S. battery plant in Ohio for roughly $2.9 billion. The facility was originally a joint venture with LG Energy Solution, launched in 2022 as part of Honda’s U.S. “EV Hub” vision.
Now, Honda wants complete control. The purchase covers the factory and building-related assets, while LG keeps the land and equipment. Final transfer is expected on February 28, 2026, pending closing adjustments.
Why This Matters
The plant was planned to start producing EV batteries in late 2025. That timeline shifted to 2026, but production plans stay on track. LG says the deal boosts operational efficiency, letting Honda take on construction costs and streamline future development.
Despite the sale, both companies will continue operating the facility together through a lease, ensuring continuity without slowing output.
Powering Honda’s Next Wave of EVs
The batteries built here will feed Honda’s new standalone EV lineup. The first model using these packs will be the Acura RSX launching next year. Then comes Honda’s 0 Series, starting with a sedan and an SUV on Honda’s new dedicated EV platform—not GM’s Ultium, like the Prologue.
Honda’s prototypes shown at CES 2025 signal clean styling, lightweight architectures, and efficiency-driven software. This plant will help turn those concepts into volume production vehicles.
Honda may also tap the facility for energy storage systems, an area where demand continues to grow globally.
A Strategic Shift in the Battery Race
The timing is significant. Earlier this month, Ford canceled a major LG battery supply deal worth 6.6 billion USD, pushing LG to scale its energy storage business. Honda moving in the opposite direction shows confidence—and commitment—to building its EV future domestically.
With full ownership of its U.S. battery supply, Honda gains control, flexibility, and long-term cost leverage. It positions the brand to compete aggressively as the next generation of EVs hits the market.
