Honda spends 40 billion USD to build an all-electric car empire

Honda has announced it will invest about $40 billion to electrify its product line of 30 battery-powered vehicles, including two SUVs and a minivan. Honda is also expected to produce two million electric vehicles a year by 2030.

Honda spends 40 billion USD to build an all-electric car empire - Photo 1.

Honda CEO Toshihiro Mibe shared: “To invest in resources for the next 10 years, we will invest about $64 billion in research and development costs.”

Last April, during the company’s launch press conference, Mibe said: “To achieve the goal of zero carbon and no more gas cars, that is the responsibility of an automobile manufacturer. Honda will try to increase the percentage of electric vehicles in total car sales in all major electrification markets combined to reach 40% by 2030, then to 80% by 2035 and 100% globally by 2040. These are challenging goals and to achieve them we need collective effort throughout the value chain”.

Investments include solid-state battery development

Honda is also focusing on developing solid-state batteries that are lighter, recharge faster and offer more range than traditional lithium-ion batteries.

To date, Honda has invested $343 million in the development of its own solid-state battery line. Honda aims to bring the product to market in the second half of this decade.

Meanwhile, the company remains reliant on lithium batteries, which it buys from outside partners such as General Motors in North America. On the other hand, Honda does not rule out the possibility of forming a battery joint venture with an external partner.

Despite the extra effort and capital allocated to solid-state battery development, much of Honda’s electrification strategy will focus primarily on hybrid vehicles.

Refer to Interestingengineering

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