Honda Strengthens Its Battery Supply for Electric Vehicles, Inks Agreement With CATL

With a goal of electric vehicles (EVs) accounting for two-thirds of global sales in 2030, Honda Motor (NYSE:HMC) has just taken a step to shore up its battery supply. The automaker announced today that it has entered into an agreement with Contemporary Amperex Technology Ltd., otherwise known as CATL, to fortify their positions in the area of battery technology — particularly for battery EVs. According to Honda, the “agreement will enable the two companies to begin discussions on a broad range of areas including joint development, stable supply, and the recycling and reuse of batteries.”

If the partnership proceeds as planned, Honda will introduce the first vehicles sourced with batteries from CATL next year in the Chinese market, followed by vehicles globally, though Honda hasn’t provided details for the timing of the latter.