Contemporary Amperex Technology Co., Ltd. (CATL) is one of the top suppliers of EV batteries in China and has been making inroads into supplying companies outside of China, such as BMW, Volkswagen, Nissan and Renault. Now we have news that Honda has signed an agreement with CATL for 56 GWh of batteries.
On the 5th of February 2019 in Tokyo, CATL and Honda signed a cooperation agreement with the intent to cooperate in the development of electric vehicles.
Honda has been reportedly working with CATL on a $20,000 electric Honda Fit for release in 2020 in China and other markets, read more at Cleantechnica.
In the agreement, CATL guarantees it will supply Honda 56 GWh of lithium-ion batteries before 2027.
Honda EV plan and China
At the Beijing Auto Show in 2018, Honda announced that by 2025, more than 20 electrified vehicles will be launched in China, Those 20 models being Hybrid, Plug-in Hybrid and Fully Electric. These cars will be built in cooperation with Honda’s joint venture partners such as GAC (Guangzhou Automobile Group Co) and Dongfeng (Dongfeng Motor Corp).
The reasons for these efforts can be most likely attributed to China’s New Energy Vehicle (NEV) mandate based on a NEV credit system, as Maarten Vinkhuyzen explained in an article last month China’s government policy is the most likely reason these plans are coming into play because in 2017 Honda had 1.46 million vehicle sales in China and if they do not have the credits they have to buy them or risk market access.
Honda is not alone in having to get serious about EVs and Hybrids in China, so stay tuned to Cleantechnica for more news and let us hope these efforts are truly worldwide and not just focused purely in China or Asia.
For more news on these company, check out our CATL archives. And check out our Honda archives if that’s what interests you.
Sources: EVPARTNER, YAHOO, Autonewschina.