Honda Motor and GS Yuasa International have signed a joint venture agreement to establish a new company named Honda GS Yuasa EV Battery R&D which will research and develop lithium-ion batteries and battery production methods.

The new company will also establish a supply chain for key raw materials and a production system for batteries.

The new company is scheduled to be established and begin operations before the end of 2023, subject to the approvals of the relevant authorities.

Koichi Yamamoto, president-designate of Honda GS Yuasa EV Battery R&D, said: “The new company will fully leverage the strengths of the two companies and establish a strong presence in the rapidly expanding battery market.”

The company will be based in Kyoto.