Utility Dive•9 days ago
Honda buying LG Energy Solution’s stake in Ohio EV battery plant building for $2.85B
Key Takeaway
A major battery manufacturer's potential strategic shift from EV batteries to energy storage systems signals growing opportunities and supply chain focus for grid-scale and commercial/industrial storage developers and large power consumers.
AI Summary
- •Honda is acquiring LG Energy Solution's 50% stake in their Ohio EV battery plant joint venture for $2.85 billion, taking full ownership.
- •While LGES cites 'operational efficiency,' press reports indicate a potential strategic pivot by LGES towards energy storage systems (ESS) development and manufacturing.
- •This transaction signifies a major OEM (Honda) consolidating its EV supply chain and a leading battery manufacturer (LGES) potentially re-prioritizing its market focus towards grid-scale and commercial/industrial storage solutions, impacting future battery supply and pricing for these sectors.
Topics
datacenterfinancingm&aoemstorage
Article Content
LG Energy Solution said the deal is intended to “increase the operational efficiency” of its joint venture with Honda. However, press reports and company statements suggest a potential shift to energy storage systems.