Honda Commits $65 Billion Over Next Decade to Drive EV Expansion

Honda Motor Co. has unveiled a $65 billion investment plan aimed at accelerating its transition to electric vehicles (EVs) over the next decade. This significant move will strengthen Honda’s position in the rapidly expanding EV market, with a goal of introducing seven new electric models by 2030.

CEO Toshihiro Mibe emphasized Honda’s commitment to EVs as the most effective solution for future mobility, stating, “Honda has not changed its belief that EVs are the most effective solution.”

The investment will cover various aspects of the EV ecosystem, including new technologies, manufacturing facilities, and a comprehensive supply chain. This includes partnerships with battery manufacturers such as LG Energy Solution and GS Yuasa to ensure a steady supply of lithium-ion batteries.

In North America, Honda’s joint venture with LG Energy Solution will begin producing batteries with an annual capacity of up to 40 GWh. These batteries will be essential for Honda’s new EVs, expected to hit the market in the coming years. Additionally, Honda plans to establish in-house battery production to further reduce costs and increase efficiency.

By 2030, Honda aims to reduce the cost of EV batteries built in North America by over 20% and achieve a 5% return on sales from its EV business. The company also plans to introduce a series of smaller EVs, starting with the N-Van e, a commercial mini EV, which will go on sale in Japan this fall.

This substantial investment is part of Honda’s broader strategy to achieve 100% EV sales by 2040, aligning with global efforts to combat climate change and reduce carbon emissions. Honda aims for EVs and fuel-cell EVs to account for 40% of its global sales by 2030.

Honda’s bold move comes as the automotive industry undergoes a significant transformation, with traditional automakers racing to catch up with industry leaders like Tesla and emerging Chinese competitors such as BYD.