Honda Motor and GS Yuasa have announced they will create a joint venture to produce electric vehicle (EV) batteries.
The joint venture, which is scheduled to launch by the end of 2023, will focus on a variety of EV battery-related activities, including the creation of the requisite sales channels.
Honda and GS Yuasa, a well-known Japanese battery manufacturer, will also consider working together on managing intellectual property and creating effective manufacturing methods.
GS Yuasa has so far only produced hybrid car batteries for Honda. However, President and CEO Osamu Murao stated in November of last year that the company would enter the market for EV batteries as early as fiscal 2023 due to the growing demand for electric vehicles, reports Nikkei Asia.
According to Honda, the two companies are still working out the specifics, including ownership stakes and a production schedule.
Honda has previously announced plans to offer only fuel cell or electric vehicles by 2040. To get there however it will need to secure a sizable supply of automotive batteries. The Japanese automaker had also previously announced plans to use batteries from Envision AESC Group for models going on sale in 2024. This joint venture is expected to play a more significant role in Honda’s EV plans for 2025 and beyond.
The company is also expanding internationally, with plans to begin mass-producing batteries in 2025 at a $4.4 billion U.S. plant with LG Energy Solutions. Through 2030, it will also buy batteries from Tesla supplier Contemporary Amperex Technology (CATL).