China's Contemporary Amperex Technology Limited (CATL) and Honda Motor said they had signed an agreement "to form a comprehensive strategic alliance on new energy vehicle batteries to strengthen their strategic partnership and promote the popularisation of e-mobility".
The agreement would enable the two companies to begin discussions on a broad range of areas including joint development, stable supply, and the recycling and reuse of batteries.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
"By bringing together the two companies' individual technology advantages, CATL and Honda will conduct joint development on NEVs batteries and joint R&D into fundamental technologies, aiming for their future application," a statement said.
"CATL will provide stable supply of NEV batteries to Honda, mainly for battery electric vehicles (BEVs)."
The first model with a CATL battery is scheduled to be launched in China in 2022.
The alliance would be further expanded "to the global level" in future.
Battery recycling and reuse also would be a topic for further discussion between CATL and Honda.
Honda has acquired approximately 1% of CATL shares through the non-public issuance of stocks which makes Honda a strategic partner of CATL.
This, the two companies said, would enable Honda to secure a stable supply of batteries "with excellent product and cost competitiveness".
Zhou Jia, CATL president, said: "Honda is a key player in global electrification. Through this strategic cooperation, CATL and Honda will establish a stronger global partnership. We are working together to deliver more competitive products and solutions to global electrification, and to finally achieve a clean and pleasant style of mobility."
Toshihiro Mibe, senior managing officer at Honda Motor, added: "This alliance enables Honda to further strengthen its partnership with CATL. As the speed of electrification continues to increase, CATL will be a partner that will give [us] new strength and we believe that our long-term alliance will enable [us] to further increase the competitiveness of our electrified products."
