LG Energy Solution Reportedly Wins Honda Prismatic EV Battery Deal, Its Second Major Win After Tesla

LG Energy Solution appears to be turning prismatic battery cells into a new growth engine. According to South Korean industry outlet TheElec, the company has landed a multi-trillion-won contract to supply Honda with prismatic batteries for electric vehicles, coming just months after it confirmed a roughly $4.3 billion prismatic cell deal with Tesla. Neither LG Energy Solution nor Honda has publicly confirmed the report, but if the figures hold, the Honda contract would be larger in scale than the Tesla agreement.

What makes the reported deal notable is that it would mark Honda's first order for LG Energy Solution's prismatic EV batteries — a format distinct from the pouch-type cells the two companies have relied on until now. LG Energy Solution and Honda established a joint venture, L-H Battery Company, in Ohio back in January 2023, initially committing $3.5 billion toward a roughly 40 GWh pouch-cell plant near Jeffersonville. That project, however, has since changed direction: the facility began mass production this year not for Honda's EVs but for energy storage systems, supplied through LG Energy Solution's Vertech unit, after Honda agreed to acquire the plant's building and related assets for close to $2.9 billion.

Against that backdrop, a separate prismatic battery supply agreement would suggest Honda is diversifying its battery sourcing strategy rather than depending solely on the Ohio joint venture. Industry watchers see it as a sign that automakers are increasingly willing to mix cell formats — pouch, cylindrical and prismatic — within a single manufacturer relationship as chemistry and pack designs keep evolving.

The reported Honda contract follows the confirmed Tesla deal from March, under which LG Energy Solution will supply lithium iron phosphate prismatic cells for Tesla's Megapack energy storage systems from a Lansing, Michigan plant expected to start production in 2027. That agreement, worth roughly 6 trillion won, sits squarely in the stationary storage market, while the Honda deal, as described, targets automotive EVs — giving LG Energy Solution a foothold in two different prismatic battery markets within the same year.

Prismatic cells have long been dominated by Chinese battery makers such as CATL and BYD, while Korean manufacturers built their global position mainly on pouch and cylindrical formats. Landing two large prismatic contracts in quick succession suggests LG Energy Solution is deliberately pushing to compete across all major cell formats rather than cede the prismatic segment to Chinese rivals.

TheElec's report has not been independently verified by either company, and the specific contract value — along with the claim that it exceeds the Tesla deal in size — is attributed to industry sources. Still, the outlet has a track record of accurate reporting on Korea's battery supply chain, and the move fits the broader direction both companies appear to be heading. Formal confirmation from LG Energy Solution or Honda would be the next milestone to watch.