Japanese legacy automaker Honda, through its top executive, announced plans to invest a minimum of $40 billion through 2030 for its increasingly aggressive electrification strategy. The move is part of the company’s target of having up to 40% of its overall global sales be electric by the decade’s end.
Purpose of the investment
Honda aims to launch its own independent electric vehicle subsidiary in April 2023, per Reuters.
In essence, the new business unit will supervise the automaker’s EV operations. It will focus on the following responsibilities:
- upcoming EV models
- battery production
- potential standalone charging network
Interestingly, Honda seems to be following the American EV giant’s footsteps in the industry. The plan to establish a standalone charging network is similar to Tesla‘s Supercharger network, which greatly encourages customers to opt for its EVs.
Honda says its ICE vehicle production could last until 2040
However, it must be noted that Honda will not entirely abandon its conventional car business. Honda CEO Toshihiro Mibe clarified that the Japanese automaker intends to keep producing internal combustion engine (ICE) vehicles until 2040 or even later.
“I’ve been in the engine development business for more than 30 years, so personally it’s a little threatening. But I have to separate my own feelings from what is best for the business.”
Toshihiro Mibe, Honda CEO
The Honda boss further disclosed that the automaker is actively conducting running feasibility studies on various technologies, such as the following:
- chargers
- advanced batteries
- aerial vehicles and rockets
- new low-carbon e-fuels
CEO Toshihiro asserted that the development of new low-carbon e-fuels would aid the company in keeping its ICE business operational for another decade or two. It is particularly in the company’s performance cars, big trucks, and airplanes.
Honda is also apparently working on its own EV platform, which is expected to launch in 2026 in North America. Apart from that, it is also set to introduce a new battery technology for some of its upcoming EVs, with production scheduled in 2025 at the new Ohio plant.
“…as we move toward carbon neutrality, we are focused on electrification and fuel cells – those are the two core components of future mobility.”
Toshihiro Mibe, Honda CEO
Honda is indeed accelerating its electrification efforts as it aims to catch up with its rivals in the industry. On March 1, the Japanese automaker held its groundbreaking ceremony for the JV battery plant it intends to develop in Ohio, with South Korea’s LG Energy Solution.
