Honda acquires 1% stake in China’s automotive battery maker CATL
TOKYO, NNA – Honda Motor Co. has acquired about a 1 percent stake in Chinese car battery manufacturer Contemporary Amperex Technology Co. (CATL) to source batteries for its electric vehicles (EVs).
Honda bought shares in CATL, the world’s largest automotive battery maker, through CATL’s non-public issuance of stock for an undisclosed sum, the Japanese carmaker said Friday.
Honda has been working with CATL to jointly develop lithium-ion batteries for automobiles since February 2019. The comprehensive strategic alliance on new energy vehicle (NEV) batteries will strengthen this collaboration, a Honda spokesman told NNA.
The two partners will jointly develop batteries for NEVs including EVs, and conduct joint research and development of next-generation technologies. The alliance will help ensure that CATL will stably supply NEV batteries for vehicles Honda produces in China, according to the statement.
The two partners will also cooperate in recycling and reusing automotive batteries.
Honda is scheduled to launch its first model equipped with a CATL battery in China in 2022 with an eye to future collaboration in the global market.
Honda has set a goal of electrifying two-thirds of cars it sells around the world by around 2030.
CATL has teamed up with other domestic and overseas automakers. It partnered with Toyota Motor Co. in July 2019 to supply batteries to the Japanese auto giant and develop technologies. CATL also announced in February that it would supply on-board batteries to U.S. EV maker Tesla Inc.