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Honda To Invest $40B In EVs With An Aim To Go All-Electric By 2040

Honda intends to accelerate the development of an all-solid-state battery by the end of this decade, hoping to improve the efficiency of its electric vehicles.

Honda To Invest $40B In EVs With An Aim To Go All-Electric By 2040

This decade, Honda wants to invest 5 trillion yen ($40 billion) on electric vehicle innovation, with plans to deliver 30 EVs by 2030. By 2040, Toyota plans to sell all-electric or fuel cell cars with General Motors.

In a news conference held at Honda’s Tokyo headquarters, President Toshihiro Mibe declared that the company would build high-value vehicles globally. Mibe promised a 2040 gasoline-free future in his first press conference as president in April 2021, and he delivered on that promise today.

Honda spent about $7 trillion on R&D during the last decade. This figure will be increased by almost 10%. Sixty percent of R&D spending and cash will go to electric cars and technology.

A regional battery strategy was also outlined during the press briefing. To maintain steady supplies of liquid lithium-ion batteries, the corporation wants to strengthen ties in North America, China, and Japan. It’s also proposing a cooperative venture to produce more batteries. Honda, for example, will buy Altium batteries from GM.

Honda intends to accelerate the development of an all-solid-state battery by the end of this decade, hoping to improve the efficiency of its electric vehicles. Honda aims to invest almost 43 billion yen in Tochigi Prefecture in 2024.

By 2030, the company intends to sell over 2 million electric vehicles annually. Two large electric vehicles developed with General Motors will be released in North America in 2024. By 2027, China will have ten models, accounting for around 40% of Honda’s global sales. A million yen light car will also be released in Japan in the first half of 2024.

A location’s strategy differs. Mibe claims the company is at the dawn of the electric vehicle era. However, the corporation is looking into a long-term plan to cover all platforms.

Mibe stated that producing software value will account for a large amount of the vehicle company, which is vital in expanding software investment. So the car will be more developed than when it was acquired.

The intentions of other Japanese automakers are finally being revealed. With 8 trillion yen invested in electric and hybrid vehicles over the next eight years, 2 trillion yen will go to batteries. The world’s largest automaker wants EVs to account for 30-40% of sales by 2030, or around 3.5 million vehicles.

With 2 trillion yen invested in electric car development over five years, Nissan hopes to sell 50% of electric vehicles by 2030. By 2028, the company plans to have solid-state batteries built in-house. It envisions a pilot manufacturing line functioning at its Yokohama factory by fiscal 2024.

According to Tokai Tokyo Research Institute expert Seiji Sugiura, the investment is equal to Toyota’s. However, he believes the investment capital is overblown, given the ongoing collaborations with GM, CATL, and others. The impact on stockholders will be minor until the company’s effectiveness is clearer.

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