Honda Motor Co. is set to acquire battery manufacturing assets from LG Energy Solution for US$2.9 billion, according to a Bloomberg report, marking a major step in the Japanese automaker’s push to strengthen its electric vehicle supply chain in the United States.
The transaction centres on LG Energy’s stake in a US-based battery production facility that has been central to Honda’s electrification strategy in North America. The deal is expected to give Honda greater control over battery sourcing as it accelerates its transition toward electric vehicles amid intensifying global competition and tighter emissions regulations.
Battery supply has become a strategic priority for automakers as demand for electric vehicles rises and governments, particularly in the US, push for localized manufacturing through incentives such as the Inflation Reduction Act. By acquiring these assets, Honda aims to secure long-term battery availability, reduce exposure to supply disruptions, and better manage production costs.
For LG Energy Solution, the sale aligns with its broader strategy to optimize its global manufacturing footprint and redeploy capital into higher-growth or more strategic partnerships. The South Korean battery giant remains one of the world’s largest EV battery producers, supplying major automakers across Asia, Europe, and North America.
Neither Honda nor LG Energy immediately commented publicly on the report. Regulatory approvals are expected to be required before the transaction can be finalized, and the timing of completion has not yet been disclosed.
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