Honda to Boost EV Investment by $65 Billion Through 2030

By Trisha Andrada

May 17 2024, 01:15 AM EDT

Honda revealed plans to spend 10 trillion Japanese yen ($65 billion) on electric vehicles (EVs) until 2030, twice its previous commitment, to remain competitive. The automaker will reportedly release new EVs, improve EV infrastructure and technology, and create a whole supply chain that includes batteries.

To achieve self-sufficiency in its EV industry by 2030, Honda has also implemented an innovative plan that targets a return on sales of 5%.

CEO Toshihiro Mibe unveiled the new strategy on Thursday, May 16. Honda believes that the number of people buying EVs will continue increasing, and it hopes to capitalize on this.

Honda to Release New EV Models

According to Electrek, the small EVs and motorcycle markets are ones that Honda is certain it can dominate. The all-new 0 series from Honda is sure to be an important player. The Saloon and the Space Hub were two novel concepts introduced at the Consumer Electronics Show in January. The Saloon will be Honda's flagship EV in 2026.

Honda intends to introduce seven EV models worldwide after the Saloon. By 2027, it also plans to launch ten new EVs in China. Debuting its new Ye Series EVs, it aims to compete with BYD and other Chinese manufacturers.

The N-Van e, a mini commercial EV, is the first of Honda's planned lineup of smaller EVs. By 2025, this will include personal mini-EV variants.

Automaker Plans to Create Robust Supply Chain Network

Honda will begin to fortify its relationships with suppliers of lithium-ion batteries to control expenses in its supply chain. Honda and its joint venture partners will start manufacturing batteries soon.

In the United States, a joint venture between Honda and LG Energy Solution will start producing batteries with a yearly capacity of up to 40 GWh. Honda's 0 series EVs will use these small and lightweight battery packs.

With the help of GS Yuasa, Honda will start making EV batteries in-house. In addition, Honda aims to procure battery components in Canada, such as separators from Kasei and cathode materials from POSCO Future M.

Honda says it will cut North American EV battery prices by 20% by 2030. The funding for Honda's 2030 EV production goal of over 2 million units is already in place.

Ultimately, Honda plans to have EVs make up 40% of all vehicles sold worldwide in 2030 and 100% by 2040.