China’s largest battery supplier Contemporary Amperex Technology Co Ltd (CATL) and Japan’s Honda Motor Co inked a strategic partnership on new energy vehicle batteries on Friday as the auto industry is speeding up its transition towards electrification.
Honda will buy a one per cent stake in CATL, who will provide competitive power batteries and enable Honda to secure a stable supply of batteries.
The two companies will also jointly develop battery technologies. Honda is expected to launch its first electric vehicle with CATL’s battery in China by 2022.
In addition to the joint development, the two sides will expand their global partnership in recycling and reusing batteries.
Honda senior managing director Toshihiro Mibe said: “As the speed of electrification continues to increase, CATL will be a source of new strength for Honda.
“We believe that our long-term alliance will enable Honda to further increase the competitiveness of our electrified products.”
CATL president Zhou Jia said: “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.”
In February last year, CATL signed agreement with Honda to develop electric vehicles and provide 56GWh lithium-ion power batteries to Honda before 2027.
The new partnership comes at a time when international carmakers are buying stakes in Chinese power battery companies to ensure supplies as they rev up production of electric vehicles.
Earlier this month, Daimler AG acquired a stake of around three per cent in Chinese battery cell maker Farasis Energy Inc.
In late May, Volkswagen acquired a 26 per cent stake in Gotion High-Tech Co Ltd to become the largest shareholder of the Chinese battery manufacturer.
In addition to Honda, CATL is also battery supplier of Volkswagen AG, Bayerische Motoren Werke AG (BMW), Tesla Inc and other world-renowned carmakers, while Honda is the first overseas auto group with a stake in CATL.
CATL said that through the non-public issuance of stocks, it will strengthen its battery development and further expand production capacity to meet growing market demands and enhance the company’s profitability.
In the first half of this year, CATL’s total installed capacity was 2.29GWh, giving it a 48.78 per cent market share, the China Automotive Battery Industry Innovation Alliance said.
Last year, Honda with its Chinese joint venture GAC launched its first pure electric vehicle, the VE-1 SUV.
Globally, Honda has cooperated with Japanese electronics maker Hitachi Ltd’s auto parts subsidiary to develop, produce and sell motors to be used in hybrids, plug-in hybrids and battery-powered electric cars.
The carmaker has also partnered with General Motors Co (GM) to develop two new electric vehicles.
The two sides will cooperate to develop hydrogen fuel cell vehicle technology.
CHINA DAILY/ASIA NEWS NETWORK