Honda China Reaches Long-Term Purchase Agreement With CATL
Honda’s China division announced on September 7 that it had signed a memorandum of strategic cooperation with Chinese battery giant CATL. Under this agreement, the two sides will aim to build a long-term and stable power battery supply and demand system, accelerating the cause of electrification.
Meanwhile, Honda China signed an agreement with China’s Dongfeng Motor and GAC Group on August 31. The firms will jointly establish a venture named HDG (Beijing) Trading Service Co., Ltd. at the end of September, focused mainly on the procurement of power battery products in China.
Honda China said that at present, its subsidiaries GAC-Honda and Dongfeng-Honda purchase pure electric vehicle power batteries from CATL. In the future, they will be uniformly purchased by the new venture to achieve enhanced efficiency.
In addition, Honda and CATL will negotiate with a factory project in Yichun, Jiangxi Province, which is now under construction, to achieve a more efficient logistics system in the fields of intensive production and battery recycling. This is aimed at ensuring the long-term stable supply of power batteries and further enhancing competitiveness.
In 2020, Honda and CATL signed an all-round strategic cooperation agreement on power batteries for new energy vehicles. The cooperation covers the fields of joint development, stable supply, recycling and reuse of power batteries. The establishment of the new venture this time will further strengthen their strategic cooperation relationship, and consolidate the supply and demand system of power batteries for the continuous expansion of Honda’s new “e:N” pure electric vehicle product lineup in China.
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Honda plans to launch 10 e:N pure electric vehicles to China by 2027. With the launch of the e:N brand products, Honda is providing new brand experience through offline sales channels and an online exhibition hall sales mode. GAC Honda and Dongfeng Honda have also started the construction of new electric vehicle factories. Through the above measures, Honda has made every effort to accelerate the transformation of electrification.
The establishment of this new venture represents a further consolidation and deepening of Honda’s electrification strategy. In the future, Honda will continue to carry out various electrification initiatives covering the value chain to realize the vision of carbon neutrality in 2050 at an early date.