Honda and GS Yuasa are set to collaborate on a joint battery factory in Japan, with production expected to begin in 2027. The two companies have had a joint venture in place for 14 years called Blue Energy, which has produced batteries primarily for Honda hybrid models and the Toyota RAV4 Hybrid.
Earlier this year, Honda and GS Yuasa signed an agreement to develop batteries, production methods and establish a supply chain for raw materials. The plan for a battery cell factory is a direct result of this agreement, with Blue Energy investing around 431 billion yen ($3.2 billion) to build a production facility with an annual capacity of 20 GWh.
See also: Honda and GS Yuasa Announce Partnership for High-Capacity Lithium-Ion Battery Production
The factory will be commissioned in April 2027, with series production starting in October of the same year. The Japanese government is supporting the project with subsidies totaling 158.7 billion yen (about $1.17 billion).
The project is part of a larger plan by the Japanese government to support the development of storage batteries and semiconductors, with a total of 184.6 billion yen ($1.38 billion) in subsidies for eight storage battery-related proposals and up to 56.4 billion yen for two semiconductor-related projects.
See also: Honda Will Launch 30 New Electric Vehicles By 2030
The joint venture between Honda and GS Yuasa shows the commitment of these companies to the development of electric vehicle technology. With the construction of the battery factory, the two companies are well-positioned to continue to produce high-quality batteries for a variety of applications, from hybrid vehicles to pure electric vehicles. The government’s support of the project further underscores the importance of the development of electric vehicle technology and the role of Japanese companies in leading the way.
