government said storage batteries were a strategically critical product and it believes local development and production of them are key to economic security. As part of this new designation, Japan’s Ministry of Economy, Trade and Industry will provide roughly 150 billion yen to help subsidize the joint venture.
Honda needs to secure large supplies of batteries if it wants to hit its EV sales goals. The brand is currently aiming to sell nothing but electric and fuel-cell vehicles by 2040. It has also secured a supply deal with Envision AESC for EV batteries and has alsoadds that Honda will also purchase batteries from CATL through 2030.Honda and GS Yuasa have worked together extensively in the past and in 2009, formed the Blue Energy joint venture to provide hybrid batteries to Honda and Toyota.