Japanese carmaker Honda has acquired about 1% of the shares in Chinese battery maker Contemporary Amperex Technology (CATL) through a non-public issuance of stocks, with the intention of securing a stable supply of batteries from the Chinese firm, the two companies said in a joint statement on Friday July 10.
The investment is part of a strategic agreement between the two companies which will include joint development, stable battery supply and recycling.
CATL will provide new electric vehicle (NEV) batteries to Honda, mostly for use in its battery electric vehicles (BEVs).
The first Honda vehicle equipped with a CATL battery will be launched in the Chinese market in 2022, after which the partnership between the two companies will expand globally, they said.
Earlier this year, Honda announced that around
two-thirds of the vehicles it produces by 2030 should be powered by electricity, as part of the carmaker's electrification strategy.
The agreement comes at a time when other carmakers are joining forces with EV battery makers while the shift toward electrification of mobility gains pace globally.
Earlier this month, Germany-based carmaker
Mercedes-Benz agreed a strategic partnership with China-based battery cell maker Farasis Energy, which included buying a 3% stake in the Chinese company.