Contemporary Amperex Technology Co. (SZ: 300750) and Honda (TYO: 7267)have signed an agreement for a “comprehensive strategic alliance on new energy vehicle batteries to strengthen their strategic partnership and promote the popularization of electrified vehicles.” Honda has acquired ~1% of CATL shares through CATL’s non-public issuance of stocks. This makes Honda a leading strategic partner of CATL.
The companies said the agreement will enable them to begin discussions on a broad range of areas including joint development, stable supply, and the recycling and reuse of batteries. Honda is spreading the risk and costs and hedging its bets on battery electric vehicles, the development of which is threatened by the ongoing Covid crisis that has already cost automotive companies billions of dollars. A key byproduct of EVS is autonomous vehicles – which may not justify the investment required for a decade or more. Continue reading