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LG Energy Solution Sells Ohio Battery Plant Building to Honda in $2.86 Billion Deal

The asset transfer is meant to streamline joint-venture operations, giving Honda greater flexibility across electric and hybrid programs.

Overview

  • The sale covers the factory building and related facilities but excludes the land and production equipment, LG Energy Solution said in a regulatory filing.
  • LGES will retain its stake in the L-H Battery Company joint venture, which will lease the facility with no changes to production or operational plans.
  • Production at the Jeffersonville, Ohio site is expected to begin next year, according to a person familiar with the plans and company statements.
  • The transaction is scheduled to close on Feb. 28, with the final price subject to due diligence and exchange-rate adjustments, The Korea Herald reported.
  • The move follows Ford terminating a roughly 9.6 trillion won LGES supply deal and taking a $19.5 billion writedown, as SK On ended its U.S. JV with Ford and Korean suppliers shift lines toward energy storage systems.