Honda Motor Co (HMC) is buying the assets from its U.S. joint venture with South Korea’s LG Energy Solution for $2.9B.
The assets to be sold to Honda (HMC) include land and equipment pertaining to the joint battery plant in Jefferson, Ohio. While the decision to sell the assets will not dissolve the joint venture or reduce LG Energy’s stake, it is intended to “improve joint venture operational efficiencies,” LG Energy said in a regulatory filing.
Honda (HMC) and LG Energy Solution formed the joint venture in 2022 to build batteries for electric vehicles at the Ohio plant. Mass production is expected to begin in 2026.
The decision by Honda (HMC) to buy out LG Energy follows Ford’s (F) announcement earlier this month to terminate its partnership with the South Korean company to supply EV batteries to Ford’s European operations.
