South Korea\u2019s LG Energy Solution has agreed to divest factory building assets at its Ohio electric vehicle battery joint venture to Honda Development and Manufacturing of America.<\/p>\n
In a transaction valued at Won4.22tn ($2.85bn) according to a regulatory filing, the deal covers the building and related infrastructure owned by subsidiary L-H Battery Company.<\/p>\n
The deal excludes the land and production equipment.<\/p>\n
LG Energy Solution said the move is aimed at improving operational efficiency within the joint venture.<\/p>\n
Based on an exchange rate of Won1,478.90 to the US dollar at the contract date, the disposal equates to a converted value of $2.85bn.<\/p>\n
The company noted that the final consideration could be revised following due diligence and any subsequent exchange-rate adjustments.<\/p>\n
Completion of the deal is targeted for 28 February 2026.<\/p>\n
The assets being sold account for roughly 7% of LG Energy Solution\u2019s consolidated total assets, which stood at Won60.31tn at the end of 2024.<\/p>\n
The Ohio facility forms part<\/a> of a $4.4bn battery manufacturing joint venture announced in 2022 between Honda Motor and LG Energy Solution.<\/p>\n As reported by The Korea Herald<\/a>, under the revised arrangement, the joint venture will continue operating at the site through a lease agreement, with no changes planned to production schedules or operational strategy.<\/p>\n The sale-and-leaseback structure is intended to reduce capital burdens by cutting construction-related costs.<\/p>\n It represents the largest portion of total investment, and to improve liquidity tied up in fixed assets amid a global slowdown in electric vehicle demand and the phasing out of US consumer EV subsidies.<\/p>\n Battery manufacturing at the Ohio plant is expected to begin next year to support Honda\u2019s North American electric vehicle line-up, with provisions allowing for a potential expansion into energy storage system applications.<\/p>\n