SES Holdings itself is an electric vehicle battery company from Boston, United States (US), SES Holdings.
This partnership is part of Honda's overall battery strategy. These lithium-metal batteries can help Honda in developing better battery technology for electric vehicles, and can drive the expansion of its business globally.
Lithium-metal batteries are claimed to have a higher energy density than lithium-ion batteries. As is known, lithium-ion batteries are a type of battery that is currently widely used in electric vehicles marketed in the world.
Honda plans to buy a small stake in SES Holdings when the battery company is listed on the New York Stock Exchange. Honda will acquire a stake in SES through a special purpose acquisition company (SPAC) transaction. This collaboration is said to be the key for Honda to accelerate the electrification of its vehicles globally.
“The battery is an essential component of an EV, and Honda has simultaneously looked at several options towards realizing the next generation of high-capacity, safe and inexpensive batteries,” said Honda Motor Managing Executive Officer Shinji Aoyama.
In addition to SES Holdings, Honda will also cooperate with a number of companies with advanced technology so that companies can make electric vehicles that are more competitive and attractive to consumers.
Earlier this year, Honda announced it would build a new EV factory in China. The new factory will have a production capacity of 120,000 units per year.