Honda Motor Company has partnered with Hanwa Co. to secure a stable supply of electric vehicle battery materials as the Japanese automaker prepares for a push to transition to EVs.
On Tuesday, Honda said it had entered a partnership with Hanwa and will have a steady supply of nickel, cobalt, and lithium, three metals commonly utilized in electric vehicle batteries.
“Honda will ensure stable procurement in the medium to long term,” the company said, “positioning the mined resources secured by Hanwa at the core.”
Honda’s statement detailed that the partnership also will help the company realize carbon neutrality by 2050. “Honda is striving to make battery-electric vehicles (EVs) and fuel cell electric vehicles (FCVs) represent 100% of its global vehicle sales by 2040. Toward this target, Honda is planning to launch 30 EV models globally by 2030 with a production volume of more than 2 million units annually,” it said.
Honda has not made huge advances in EVs compared to other companies. However, the Japanese automaker has established several strategic partnerships over the past year that have indicated a refined and calculated strategic push toward eventual electrification.
Honda and Sony have agreed to a partnership in electric vehicle development, with first deliveries expected to occur in 2025. Honda also has a partnership in place with General Motors, which will develop a lineup of affordable EVs that will make the powertrains more affordable.
Internally, Honda is developing the Prologue, an all-electric SUV that is set to be released in 2024. Honda plans to sell 500,000 EVs annually in North America by 2030, and is making changes in other parts of the business, like updating dealerships and requiring them to have EV chargers at every location.
EV companies have struggled to establish stable and dependable material supply chains over the past two years due to the pandemic. Automakers have started to establish contractual obligations with both mining and cell manufacturers to alleviate these potential bottlenecks, which can delay production by months or even years.
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