Japanese automaker Honda Motor Co and Chinese battery manufacturer Contemporary Amperex Technology Co., Limited (CATL) inked a strategic deal regarding the supply of 123 GWh batteries for the automaker’s electric vehicles from 2024 to 2030, according to Electrek.
Honda secured enough battery capacity for over 1 million EVs
Honda first turned to CATL for cooperation in 2019 to support its electric vehicle operation with a supply of roughly 56 GWh of li-ion batteries before 2027.
However, the new strategic alliance reports that from 2024 to 2030, Honda will procure 123 GWh of batteries from CATL for its new all-electric vehicle brand, “e:N.” It is worth noting that this battery capacity would be sufficient to run more than 1 million EVs.
In retrospect, Honda’s e:N brand was first unveiled in October 2021.
Targets
By 2027, Honda intends to introduce ten new e:N-branded all-electric vehicles for the Chinese market. Notably, it already debuted its initial electric vehicle (EV) models, the e:NS1 and e:NP1, in China this past April.
By 2030, Honda aims to sell 800,000 of its electric vehicle offerings in China. That said, its strengthened collaboration with CATL will contribute to securing the long-term battery supply required to achieve that target.
Honda has undoubtedly been lagging behind its competitors in the EV market for several years and is now struggling to keep up. To increase the production of its EV series in China, the company made a very wise decision by partnering with the country’s largest battery manufacturer.
Even though Honda’s EV initiatives will initially focus primarily on the Chinese market, the automaker clarified it “envisions exporting these models from China.” That said, we may see the Japanese automaker expand to international markets with its EVs powered by CATL’s batteries.
