Honda to invest $40 billion for electrification, plans 30 EVs by 2030

Honda`s overall R&D expenses budgeted for this period will be approximately 8 trillion yen out of which approximately 5 trillion yen will be allocated for electrification and software technologies to further accelerate its electrification.

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Honda has revealed intentions to release 30 electric vehicle (EV) models worldwide by 2030, ranging from commercial-use mini-EVs to flagship-class models, with an annual production volume of over 2 million units. Honda will invest around 5 trillion yen ($40 billion) on electrification and software technologies over the next ten years, including both R&D expenses and separate investments, to further accelerate its electrification.

Honda`s overall R&D expenses budgeted for this period will be approximately 8 trillion yen, the company said in a statement late on Monday. "Honda will build a demonstration line for the production of all-solid-state batteries with an investment of approximately 43 billion yen and further accelerate the research with a goal to start demonstration production in Spring 2024," said the company.

The key challenge in the EV era is the global procurement of batteries. Honda said it will ensure stable procurement of liquid lithium-ion batteries in each region by strengthening the external partnership. Honda will introduce products tailored to the market characteristics of each region (North America, China and Japan).

In 2026, the automaker will begin adopting Honda e: Architecture, an EV platform that combines the hardware platform and software platform.

Through the alliance with GM, Honda is planning to introduce affordable EVs in 2027, with a cost and range that will be as competitive as gasoline-powered vehicles, starting from North America

With inputs from IANS