BUSINESS Honda invests in China's leading lithium-ion battery maker

BUSINESS

Honda invests in China's leading lithium-ion battery maker

Xinhua

08:32, July 11, 2020

FUZHOU, July 10 (Xinhua) -- Japanese automaker Honda will buy a one-percent stake in Contemporary Amperex Technology Co. Limited (CATL), China's largest lithium-ion battery maker, the two companies announced on Friday.

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File photo by CFP

The companies said in a joint statement that they would jointly develop EV battery technologies, and expand discussions on battery recycling, and reuse business.

Honda's first model equipped with a CATL battery is scheduled to be launched in the Chinese market in 2022. This alliance will be further expanded to the global level with a stable EV battery supply in the future.

According to the statement, Honda will acquire the CATL shares through the non-public issuance of stocks to become a leading strategic partner of CATL. This will enable Honda to secure a stable supply of batteries.

Zhou Jia, president of CATL, said through the cooperation, the two companies would establish a stronger global partnership to deliver more competitive products and solutions to global electrification.

Headquartered in Ningde, east China's Fujian Province, CATL has inked supply contracts with a slew of global car manufacturers including BMW, Volkswagen, Daimler, and Tesla.

The battery giant reported a 28.6-percent year-on-year growth in net profit in 2019.

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