Honda is making a small investment in Chinese battery maker Contemporary Amperex Technology (CATL), as the two companies are set to jointly develop batteries for electric vehicles going forward.
We’ve known since last year that CATL would develop batteries with Honda, while also supplying batteries to Tesla, Toyota and Volkswagen, according to Autonews. The carmaker acquired CATL shares through the latter’s non-public issuance of stocks.
Aside from co-developing battery technologies, the two companies will also look into battery recycling as a business. Honda plans on launching its first EV featuring a CATL battery in China in 2022.
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“This alliance enables Honda to further strengthen its partnership with CATL. As the speed of electrification continues to increase, CATL will be a partner that will give Honda new strength, and we believe that our long-term alliance will enable Honda to further increase the competitiveness of our electrified products. Honda will continue its challenges toward offering joy and freedom of mobility and the realization of a sustainable society,” said Honda exec Toshihiro Mibe.
Honda’s other EV partnerships include a deal with GAC, which resulted in the Japanese carmaker selling its first battery EV, the Everus VE-1 crossover, in China last year. Honda also has a deal in place with Hitachi’s auto parts subsidiary for the development, production and commercialization of hybrid, PHEV and BEV motors.
In the U.S., Honda has partnered with GM for the development of two new electric vehicles.
“Honda is a key player in global electrification. Through this strategic cooperation, CATL and Honda will establish a stronger global partnership. We are working together to deliver more competitive products and solutions to global electrification, and to finally achieve a clean and pleasant style of mobility,” stated CATL president Zhou Jia.
