Honda to Buy Ohio Battery Plant Assets From LGES for $2.9B

Honda Motor Co., Ltd. HMC is set to acquire a factory building and related assets in Ohio from South Korea’s LG Energy Solution (“LGES”) in a deal valued at about $2.86 billion. The transaction, which excludes land and equipment, is intended to enhance operational efficiency at their joint venture, per a regulatory filing. The final price may change following due diligence and exchange-rate adjustments, with completion targeted for Feb. 28.In 2022, Honda Motor and LGES selected Ohio for their planned $4.4 billion joint-venture (JV) battery plant. Through the purchase of the building assets, Honda said that it can make a long-term commitment to battery production and remain flexible in supplying batteries not only for electric vehicles but also for hybrids, per Reuters.The transaction will be structured as a sale-and-leaseback, with Honda’s U.S. subsidiary buying the facility and leasing it back to the JV. The plant is expected to begin full-scale operations next year, producing batteries for Honda and its premium Acura brand in North America.The move follows LGES’ announcement last week that Ford Motor had terminated an EV battery supply agreement valued at about 9.6 trillion won.Honda Zacks Rank & Key PicksHMC carries a Zacks Rank #4 (Sell) at present.Some better-ranked stocks in the auto space are General Motors Company GM, OPENLANE, Inc. KAR and Garrett Motion Inc. GTX, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for GM’s 2025 and 2026 EPS has improved 8 cents and 47 cents, respectively, in the past 30 days.The Zacks Consensus Estimate for KAR’s 2025 sales and earnings implies year-over-year growth of 9.4% and 48.2%, respectively. EPS estimates for 2025 have improved 9 cents in the past 60 days. EPS estimates for 2026 have improved 2 cents in the past 30 days.The Zacks Consensus Estimate for GTX’s 2025 sales and earnings implies year-over-year growth of 2.6% and 17.5%, respectively. EPS estimates for 2025 have improved a penny in the past 30 days. EPS estimates for 2026 have improved 8 cents in the past 60 days. Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report OPENLANE, Inc. (KAR): Free Stock Analysis Report Garrett Motion Inc. (GTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks