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Honda Announces Investment of $65 Billion Over 10 Years to Bolster EV Push

Honda Announces Investment of $65 Billion Over 10 Years to Bolster EV Push

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  • $65 Billion Investment: Honda plans to invest $65 billion over the next decade to enhance its electric vehicle (EV) capabilities.
  • Seven New EV Models: The company aims to launch seven new electric models globally by 2030.
  • Supply Chain Expansion: Significant focus on building a robust supply chain for EV batteries, including partnerships with LG Energy Solution and GS Yuasa.
  • Target 2040: Honda’s goal is to achieve 100% EV sales by 2040.

Honda Motor Co. has announced a massive $65 billion investment plan to accelerate its transition to electric vehicles (EVs) over the next ten years. This strategic move is designed to strengthen Honda’s position in the rapidly growing EV market and includes the introduction of seven new electric models by 2030.

CEO Toshihiro Mibe outlined the company’s ambitious strategy, emphasizing that Honda remains committed to EVs as the most effective solution for future mobility. “Honda has not changed its belief that EVs are the most effective solution,” Mibe stated​​.

The investment will cover various aspects of the EV ecosystem, including the development of new technologies, manufacturing facilities, and a comprehensive supply chain. This includes partnerships with battery manufacturers such as LG Energy Solution and GS Yuasa to ensure a steady supply of lithium-ion batteries

In North America, Honda’s joint venture with LG Energy Solution will begin producing batteries with an annual capacity of up to 40 GWh. These batteries will be crucial for Honda’s new 0 series EVs, expected to hit the market in the coming years. Additionally, Honda plans to establish in-house battery production to further reduce costs and increase efficiency​.

By 2030, Honda aims to reduce the cost of EV batteries built in North America by over 20% and achieve a 5% return on sales from its EV business. The company also plans to introduce a series of smaller EVs, starting with the N-Van e, a commercial mini EV, which will go on sale in Japan this fall​​.

This significant investment is part of Honda’s broader strategy to achieve 100% EV sales by 2040, aligning with global efforts to combat climate change and reduce carbon emissions. As part of this vision, Honda aims for EVs and fuel-cell EVs to account for 40% of its global sales by 2030​​.

Related Article: Honda’s Recycled Cintas Uniforms Hit the Road in New Vehicles

Honda’s bold move comes at a time when the automotive industry is undergoing a once-in-a-century transformation, with traditional automakers racing to catch up with industry leaders like Tesla and emerging Chinese competitors such as BYD​.

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