Honda Just Bought the Whole Damn Battery Plant! $3 Billion for an All-Electric Future in the US!

TL;DR: Honda's dropping nearly $3 billion to buy out LG Energy Solution's stake in their Ohio EV battery plant, taking full ownership. This big move shows Honda is serious about its upcoming, dedicated electric vehicle lineup for the US.

Meta: Honda buys US EV battery plant for $2.9B, preparing for new EV lineup.

Alright, alright, gather 'round, folks! Honda just did something that caught a few eyes and a lot of wallets. They’re buying out LG Energy Solution’s piece of their co-owned EV battery plant in Ohio. We’re talking about a cool $2.9 billion, just like that! This ain't pocket change, baby. This is Honda saying, loud and clear, "We're going all in on EVs in the U.S., and we want to own every piece of that pie!" It’s a power move, pure and simple, as they gear up to roll out an entirely new lineup of electric rides. Honda ain't playing; they're investing!

Taking Full Control of the EV Hub

This facility, known as L-H Battery Company, was initially a joint venture between Honda and LG Energy. Back in October 2022, they announced plans to pour up to $4.4 billion into creating a massive "Honda EV Hub" in Ohio. Production was supposed to kick off by the end of 2025 with a hefty 40 GWh annual capacity, but it got pushed back to 2026. Now, instead of sharing the sandbox, Honda's bought all the toys.

LG Energy Solution confirmed the sale, detailing that the $2.9 billion (4.22 trillion won) covers the building and related assets. The land and equipment? Not included, says LG. The deal's expected to close by February 28, 2026. LG’s move, they say, is all about improving operational efficiency, passing along those construction costs. But here's the kicker: the JV will still operate the plant under a lease agreement, so those batteries will still be rolling out for Honda's new EV fleet as planned. It's like buying the house but letting your old roommate keep paying rent – smart business!

Powering Honda's Electric Future

So, what's Honda gonna do with all these batteries? They're going straight into Honda's brand-spanking-new, dedicated EV lineup. First up, we're talking about the Acura RSX next year. Yeah, the RSX is coming back, but it's all-electric and sleeker than ever! Following that, expect a new SUV and a sedan, both from Honda’s 0 Series EV lineup. And listen, these ain't just rebadged GMs like the Prologue, which rides on GM’s Ultium platform. No, sir, these are pure Honda, built on a brand-new, dedicated EV platform. They might even use the plant for energy storage systems – talk about being resourceful!

This news also comes hot on the heels of Ford canceling its EV battery supply deal with LG Energy Solution earlier this month, a deal worth a cool $6.6 billion. It seems everyone's shifting and strategizing in the battery game. LG Energy is also bulking up its energy storage business, probably as a safety net in these unpredictable times. But for Honda, this acquisition is a clear sign that they're taking control of their destiny, building their own path to an electric future. They're not just buying a plant; they're buying certainty. And in this market, certainty is worth its weight in gold.

What's Next

Expect Honda to aggressively roll out its new 0 Series EV lineup, starting with the Acura RSX. With full control over its US battery production, Honda aims to secure a stable supply chain and potentially integrate more advanced battery technologies faster. This could also lead to more localized EV production, potentially benefiting from incentives and reducing logistical complexities. The automotive landscape is always changing, but Honda just dropped a big hint about where they're heading: full speed ahead into the electric era, on their own terms.

Honda's making moves, baby! You best believe it. That's how you do it! Hah!