Honda to Fully Acquire U.S. Joint Venture Battery Plant Assets for $2.9 Billion

[Investment Layout] Honda Motor Co. will fully acquire assets related to the LG Energy Solution joint venture battery plant in Ohio, USA, for USD 2.9 billion (approximately RMB 20.7 billion).

⚡ Core Move: Strengthening Autonomous Control Over Battery Supply Chain

Honda will complete the acquisition through its U.S. subsidiary, Honda Development and Manufacturing of America. The transaction is expected to close by the end of February 2026. The plant has a planned annual capacity of 40 GWh, sufficient to support approximately 600,000 electric vehicles, primarily supplying Honda and Acura models in the North American market.

📊 Key Figures: Joint Venture Structure Remains Unchanged, Asset Model Adjusted

The deal adopts a "sale-leaseback" structure and excludes land and production equipment. The joint venture company, L-H Battery Co., will continue operations with its equity structure unchanged at 51% owned by LG Energy Solution and 49% by Honda. LG Energy Solution stated this move will optimize its finances and secure cash flow amid challenges from a 24.1% year-over-year revenue decline and a 73.4% profit plunge in 2024.

🔍 Strategic Foundation: Automakers Accelerate Control Over Core Components

Batteries account for 20%–40% of total vehicle costs, making supply chain autonomy critical for cost reduction. Honda emphasized that this acquisition will enhance flexibility in battery supply for its battery-electric and hybrid vehicles, highlighting the intensifying strategic competition among global automakers for upstream resources.