China’s CATL & Honda Sign Massive EV Battery Deal

FEB 6 2019 BY MARK KANE 18

CATL gained another customer – Honda will buy 56 GWh in less than 7 years

CATL announced an interesting cooperation agreement with Honda Motor Co. on batteries for electric vehicles. We are wondering how Panasonic received such news.

According to the press release, CATL and Honda will jointly develop batteries for further Honda models, offered not only in China, but also in Japan and globally. As a first step, CATL will set up a local office in Utsunomiya, Japan (the location of the Honda R&D Co., Ltd., Automobile R&D Center in Tochigi) in order to provide more effective localization service support.

The major point of the deal is that CATL will guarantee supply to Honda of about 56 GWh of lithium-ion EV batteries before 2027. As there are less than 7 years by the end of 2026, on average Honda would need to purchase up to 8 GWh per year (probably less in the near-term, and more at the end of the deal), which would be enough for 160,000 cars with 50 kWh packs.

Honda’s official plan from 2016 envisions that by 2030 65% of cars sold will be electrified (HEV, PHEV, and EV).

At the Beijing Motor Show in 2018, the Japanese manufacturer additionally announced more than 20 electric vehicles would be launched in China by 2025.

Currently, Honda offers in the U.S. Clarity PHEV, which became one of the most popular plug-in hybrids. Next month, the company will unveil also a small electric car for Europe.

More about cooperation agreement from CATL:

“As a top player of Japanese auto, Honda has great accumulations of traditional automotive technology and successful market experience. CATL is the leader in the EV battery industry. With its strong scientific R&D, manufacturing strengths and excellent product performance, CATL has been widely accredited by global top tier automobile companies. The cooperation between the two parties is a deep integration of the traditional automobile and electrification technology for the future. CATL enters Japanese automobile enterprise supply chain which is known as “artisan spirit” with mature and reliable EV battery solutions. CATL is going to help Honda to integrate resource advantages in the electric vehicle industry and assist Honda to accelerate electrification and seized the opportunity of the “car revolution”.

In this win-win cooperation, Honda and CATL are closely engaged in technical exchanges and upgrades, they are committed to creating a clean, technological and efficient way for transportation for global consumers, and continue to create new value for the global new energy industry.”

Naosumi Tada, head of CATL’s Japanese subsidiary said:

“Customer-centered is the philosophy that CATL has always insisted on. We hope that we can establish more efficient communication channels, more timely response mechanisms, and establish a closer relationship for further cooperation. Honda and CATL have been worked closely on advanced and reliable battery solutions for Honda’s future electric vehicle applications. In the future, we will support Honda not only in China, Japan, but also to create world-leading electric vehicles that serves global consumers.”

Categories: Battery Tech, Honda


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18 Comments on "China’s CATL & Honda Sign Massive EV Battery Deal"

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Nice, the needle continues to move.

Yes. Not nearly as quickly as we’d like, but it is is moving, and even at a somewhat faster rate.

First a trickle then a flood.

That’s approx one year supply of Mod 3 battery by 2026? what Tesla is producing annually Catl will have delivered and Honda purchased cumullitatively by 2026

Model 3 uses about 19 GWh/year. Tesla plans to eventually increase that to ~32 GWh/year. Tesla plans are, of course, subject to change.

I don’t know where you got 19 GWH in a year used by Model 3; but that amounts to about 510,000 gallons of gasoline.
Currently we use about 400 million gallons a day.
It’s something but there’s a long road ahead.
It would help if the administration supported EV’s like China does.
Tesla will be eligible for Chinese subsidies by using Chinese cells for there batteries.

I think you may have confused amount used with capacity. The 19gWh of batteries is enough batteries to hold 19gWh in one charge. Since the batteries will be charged many times per year the used gWh is much much higher.

David yeah I used Doggydogworld number that the Tesla Model 3 uses 19gwh a year.
That how I came up with 510,000 gallons of gasoline.
Which if you figure 130,000 TM3 this only amounts to about an average of 4 gallons of gasoline a year per TM3.
So the actual amount of gwh a year that TM3 uses is much higher and the amount of gasoline not used is much higher.

Don’t forget, though, you use 400mil gallons of fuel per day, but you only buy the 510k gallons equivalent of batteries once every 10-20yrs. So 510k gallons of batteries makes an impact on fuel sales immediately as an ongoing process.

Doggydogworld said 19 gwh a year. Like I said this only amounted to 4 gallons of gasoline on average a year for each TM3. I don’t think his GWH figures were accurate.

It’s not much, but at least it is a small step in the right direction. It would allow less than 3% of the Honda sales being electric.

It’s actually slightly less than 8 years not 7. It’s less than 20k cars per year since most new BEV’s will have >50kwh packs. Hopefully Honda will find another supplier. Honda sold 5.2 million cars in 2018. 20,000 represents less than .4% of their total production.

Try again…the math is not your friend. 😉

@Mikie Larson: BG is pretty close though as 20,800 is 0.4% of 5.2M.

Well see that globalisation turns foes into friends working towards the good of all.
See that middle east fighting amongst yourselves and everyone else on the planet will get you know where. Just hurting yourself and wasting resources the rest of the planet could be using to create a better place for everyone.

It’s Interesting, but at the same time, encouraging, to watch the scramble for battery contracts. Hard to believe car companies have waited this long to negotiate contracts for such a critical component.

Do Not Read Between The Lines

They haven’t needed them until now. China’s mandates will kick in and ZEV states(+Quebec) are increasing requirements as well. 2.5% increase in credits per year means a minimum of 0.625% extra share for PEV for each manufacturer, or those manufacturers buying more credits from another company.

CATL has an impressive line up. With the recent announcement to increase production in Germany up to 100GWh in the future, we either have a future global champion or many disappointed customers.