Dec. 24 at 1:33 PM
South Korea’s LG Energy Solution announced the sale of
$2.86 billion in U.S.-based assets to Honda as part of efforts to improve operating efficiency in their battery joint venture. The transaction involves buildings and infrastructure in Ohio being sold by the JV, L-H Battery Company, to Honda Development and Manufacturing of America, while land and equipment are excluded.
LG and Honda formed the JV in 2022 with
$4.4 billion in initial capital to produce EV batteries for the U.S. market. The asset sale comes shortly after LG canceled a
$6.5 billion EV battery supply contract with Ford, following Ford’s decision to halt production of the electric F-150 Lightning and cancel plans for a European electric van.
The news highlights broader strain in the EV battery sector, as SK On also recently ended its U.S. battery manufacturing joint venture with Ford, BlueOval SK, which operated three plants.
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