December 25, 2025 – According to Reuters, LG Energy Solution (LGES), a major South Korean battery manufacturer, announced today that it is selling a plant and related assets located in Ohio, the United States, to Honda Development and Manufacturing of America, a subsidiary of the Japanese automaker Honda.
In a regulatory filing, LGES stated that the proposed deal, valued at $2.86 billion, excludes land and equipment. The move is aimed at “enhancing the operational efficiency of the joint venture.”
Back in 2022, Honda and LGES revealed plans to jointly invest $4.4 billion in building a battery plant in Ohio.
A source familiar with the matter said that the South Korean battery maker has no plans to dissolve the joint venture or reduce its stake. Instead, the asset sale is intended to optimize the plant’s operations. The source also added that the plant is expected to start production next year.
A Honda spokesperson told Reuters, “By acquiring these plant assets, Honda can make long-term commitments in the battery sector. This will allow us to flexibly meet various battery demands, covering not only electric vehicles but also hybrid cars.”
This deal comes just a week after LGES announced that Ford Motor had terminated an electric vehicle battery supply agreement worth approximately 9.6 trillion Korean won.
Ford said that it would record an asset impairment charge of $19.5 billion and cut several electric vehicle models.
At the same time, another South Korean battery manufacturer, SK On, ended its joint venture project with Ford in the United States this month. Other South Korean companies are also transforming their production lines to produce energy storage system batteries for facilities like data centers.
