Wedoany.com Report-Dec.27, South Korea’s LG Energy Solution has agreed to sell factory building assets at its Ohio electric vehicle battery joint venture to Honda Development and Manufacturing of America. The transaction, disclosed in a regulatory filing on December 24, 2025, is valued at 4.22 trillion won (approximately $2.85 billion to $2.86 billion, based on an exchange rate of 1,478.90 won to the US dollar at the contract date).

The deal covers the building and related infrastructure owned by the subsidiary L-H Battery Company. It excludes the land and production equipment.

LG Energy Solution stated that the sale-and-leaseback arrangement aims to improve operational efficiency within the joint venture. The joint venture will continue to operate the facility under a lease agreement, with no changes to production schedules or overall strategy.

The final consideration may be adjusted following due diligence and any exchange-rate fluctuations. Completion of the transaction is targeted for February 28, 2026.

The assets involved represent roughly 7% of LG Energy Solution’s consolidated total assets, which stood at 60.31 trillion won at the end of 2024. This move helps reduce capital tied up in fixed assets amid current market conditions in the electric vehicle sector.

The Ohio facility is part of a $4.4 billion battery manufacturing joint venture announced in 2022 between Honda Motor and LG Energy Solution. Located in Fayette County, Ohio, the plant is scheduled to begin battery production in 2026 to supply Honda’s North American electric vehicle lineup. It also includes provisions for potential future applications in energy storage systems.

Earlier in December 2025, LG Energy Solution reported in another regulatory filing that Ford Motor Company had notified it of the termination of a battery supply agreement valued at 9.6 trillion won. Signed in October 2024, the contract covered 109 gigawatt-hours of nickel-cobalt-manganese batteries from LG Energy Solution’s Polish plant, to be supplied between 2026 and 2032, primarily for Ford’s light commercial vehicles.

The Ohio sale-and-leaseback supports ongoing collaboration between the partners while allowing LG Energy Solution to enhance liquidity and allocate resources effectively. Production at the site remains on track to support Honda’s electrification plans in North America.

Overall, these developments reflect adjustments in investment strategies within the joint venture framework to maintain operational stability and respond to evolving industry needs.