Honda has struck a major deal that reshapes the future of electric vehicle battery manufacturing in the U.S., acquiring its partner LG Energy Solution’s stake in an Ohio EV battery plant for roughly $2.85 billion, according to a regulatory filing— a move that locks in long-term industrial demand in a region already facing rising power needs.
The transaction, set to close by late February, transfers ownership of the battery plant building and related infrastructure in Jeffersonville to Honda, while the joint venture will continue operating the facility under a lease agreement. Production plans remain unchanged, with the plant expected to begin manufacturing EV batteries in 2026.
The facility was originally launched in 2022 as part of a $4.4 billion joint investment aimed at building a domestic EV battery supply chain to support Honda and Acura electric vehicles in North America. At full scale, the plant is expected to be a major anchor for advanced manufacturing in the region, bringing with it sustained electricity demand that utilities must plan around years in advance.
LG Energy Solution said the sale will improve operational efficiency for the venture and aligns with its broader strategic shift toward energy storage system batteries, as EV adoption grows more slowly than previously anticipated. The company has increasingly emphasized flexibility across its portfolio as automakers adjust timelines and production strategies in response to evolving market conditions.
For Honda, owning the physical plant provides greater certainty and control as it ramps up toward a dedicated EV lineup. For utilities, deals like this signal permanence — not just a single project, but long-term industrial load that shapes grid planning, infrastructure investment, and rate design decisions across the Midwest.
Taken together, the transaction reflects a broader recalibration underway in the U.S. EV ecosystem, where automakers, suppliers, and utilities are adapting to slower near-term demand while still building out the industrial backbone needed for electrification over the long term.
