Honda: Strengthening Alliance in EV Battery and Resource Procurement
Jointly establishing new plants with LG Energy Solution in the U.S. and GS Yuasa in Japan
2023/06/02
- Summary
- Honda: Announces business plan update and Honda’s corporate transformation initiatives including electrification
- EV plan in China
- New e:Ny1 EV for Europe to be launched in autumn 2023
- EV plans in North America
- Japanese market: 4 EV models to be introduced
- Honda's business performance: Expecting operating profit of JPY 1 trillion for the first time in FY2023
- LMC Automotive Sales Forecast: Honda Group’s sales in 2026 will be 4.33 million units
Summary
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| e:N SUV Xu world premiere at the Shanghai Motor Show in April 2023 Honda announces launch of 10 e:N series models in China by 2027 |
This report focuses on the progress of Honda's EV strategy, and reports primarily on its achievements and announcements over the past year.
In his inaugural speech in April 2021, new President Mibe announced that Honda Motor Co., Ltd. (Honda) aims to “achieve its goal to increase the ratio of EV and FCEV sales to 100% globally by 2040”.
In April 2022, the company announced plans for a more concrete four-wheel electrification business. In addition to the electrification of four-wheeled vehicles, Honda will present multifaceted, multidimensional solutions that meet the needs of customers in various countries and regions, such as the use of hydrogen (see figure on the left below). The organization was also reorganized, and a new Business Development Division was established, combining the existing product-specific organizations into a single organization, which includes "electrified products and services, batteries, energy, and hydrogen," and the "software and connected areas" that link these areas.
From 2022 to the first half of 2023, Honda has announced plans to launch EVs and develop production systems in China and North America, which are major EV markets. The company also announced plans for new EVs to be launched in Japan and Europe.
In April 2023, Honda updated its business plan, including elements such as the introduction of EVs, and announced the progress it has achieved toward its business transformation and electrification, focusing on the "five key factors for the advancement of mobility" shown in the figure on the right below.
In order to further steadily promote electrification, the company will work with various partners to build a solid value chain with Honda as a hub to establish a sustainable business foundation. Honda is building a new battery plant in the U.S. with LG Energy Solution Ltd. and in Japan with GS Yuasa Corporation (GS Yuasa); in China, it is strengthening its partnership with CATL (Contemporary Amperex Technology Co., Ltd.). It will also collaborate with Taiwan Semiconductor Manufacturing Company, Limited (TSMC) in semiconductor procurement.
At the same time, based on the concept of "software-defined mobility," the development of software will be accelerated. Specifically, Honda is further evolving its E&E architecture and developing Honda's proprietary vehicle operating system with the aim of adopting it from 2025 in mid-sized to large-sized EVs to be launched in North America.
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| Providing multi-faceted and multi-dimensional solutions (Announced by Honda in April 2022) | Honda's five key factors for the advancement of mobility (announced in April 2023) |
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