Honda to set up China venture with Dongfeng, Guangzhou Auto to procure EV batteries (updated)

Hanwa

07/09/2022 04:17

(Adds details of the new joint venture)
    TOKYO, Sept 7 (Reuters) - Honda Motor Co  7267.T  said on
Wednesday its Chinese unit will establish a joint venture with
Dongfeng Motor Group  0489.HK  and Guangzhou Automobile Group
 601238.SS  Co to procure batteries for fully electric vehicles.
    The automaker's Chinese division has also agreed to
strengthen its existing partnership with CATL  300750.SZ , the
world's largest battery maker, to ensure a stable supply of
batteries, it said in a statement.
    At present, Honda's joint ventures to manufacture and sell
four-wheel vehicles in China, Dongfeng Honda and Guangqi Honda,
receive their batteries separately from CATL. 
    The latest change, however, will allow battery procurement
to be centralised through the soon-to-be-launched joint venture
to increase efficiency.        
    Honda will invest 50% into the joint venture while Dongfeng
and Guangzhou will each invest 25% into it.  
    The Japanese automaker said Tuesday it had formed a
partnership with trading company Hanwa Co  8078.T  to secure
stable supply of metals used in batteries for electrified
vehicles.  urn:newsml:reuters.com:*:nL1N30D04X

 (Reporting by Satoshi Sugiyama; Editing by Muralikumar
Anantharaman & Shri Navaratnam)
 ((Satoshi.Sugiyama@thomsonreuters.com;))