Honda invests $530 mil. in China EV battery maker CATL
TOKYO, NNA – Honda Motor Co. has invested 3.7 billion yuan ($530 million) in Chinese car battery manufacturer Contemporary Amperex Technology Co. (CATL) to collaborate in development and procurement of batteries for its electric vehicles.
CATL, the world’s largest automotive battery maker, announced Friday it has raised over 19.6 billion yuan through new share issuance for various investors such as J.P. Morgan Securities Plc, Goldman Sachs International and Credit Suisse (Hong Kong) Ltd.
Honda said on July 10 it has bought about a 1 percent stake in the Chinese company through non-public issuance of stock for an undisclosed sum.
The Japanese passenger car maker made the investment through Honda Motor (China) Investment Co., its Chinese arm in Beijing, according to CATL.
Honda has been working with CATL to jointly develop lithium-ion batteries for automobiles since February 2019. Through the share purchase, the comprehensive strategic alliance on new energy vehicle (NEV) batteries will strengthen this collaboration, a Honda spokesman told NNA.
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.