LG Energy Solution Acquires 51% Stake in US Joint Venture with Honda

[Asia Economy Reporter Lee Jung-yoon] LG Energy Solution announced on the 29th that it has decided to acquire a 51% stake in the secondary battery production and sales joint venture Honda-LGES JV (tentative name) for 2,401,165,000,000 KRW.

This corresponds to 27.47% of its equity capital, and the scheduled acquisition date is June 30, 2027. The acquisition method is cash investment, and the purpose is to secure investment funds for the joint venture to respond to the expanding demand for electric vehicle batteries in the North American market.

The company stated, "To respond to the expanding demand for electric vehicle batteries in the North American market, we will invest in the newly established joint venture with Honda," adding, "The joint venture is expected to be established within 2022, and from the establishment until 2027, we plan to acquire a 51% stake through cash investment."

Additionally, LG Energy Solution has decided to provide a debt guarantee of 599,625,000,000 KRW to Honda-LGES JV. This corresponds to 6.86% of its equity capital.

This content was produced with the assistance of AI translation services.