Honda consolidates battery purchases from CATL

The company wants to establish a joint venture with Dongfeng and GAC


An editor at eMobilCar

  • 2 min read

Honda wants to set up a joint venture in China later this month with its Chinese partners Dongfeng and GAC. The goal is a comprehensive procurement of batteries for electric vehicles from CATL.

According to the announcement, Honda will own 50 percent of the joint venture, while Dongfeng and GAC will each own 25 percent. The company agreed that the headquarters will be located in the Chinese capital Beijing under the name of HDG Beijing Trading Service (Chinese name: Zhongrui Beijing Trade Service). Katsushi Inoue is appointed head of the company.

Honda maintains Dongfeng Honda and GAC Honda joint ventures with the two vehicle manufacturers mentioned in China. They currently receive their batteries separately from CATL. Thanks to the new joint venture, battery procurement will now be centralized. At the same time, Honda China will step up cooperation with a Chinese battery manufacturer on a broad basis. The other day, both sides wrote a declaration of intent. Details about quantities and prices are unknown. Honda only says it wants "to establish long-term and stable relationships with battery suppliers". Cooperation will also be established for the production and processing of batteries at the CATL plant under construction in Yichun, Jiangxi Province.

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