Honda to Invest $40 Billion on EVs, Plans for 30 Models by 2030

Honda, one of the last mass-market automakers to hold out on electrification, on Tuesday held a press briefing to announce its plans for automobile electrification.

The press briefing featured Toyota’s Director, President and Representative Executive Officer Toshihiro Mibe, Director, Executive Vice President and Representative Executive Officer Kohei Takeuchi, and Senior Managing Executive Officer Shinji Aoyama.

The Japanese mobility giant announced plans to launch 30 electric vehicles (EVs) globally by 2030, with a production volume of over 2 million units annually by that time.

To achieve these goals, Honda will invest approximately $40 billion USD (5 trillion yen) over the next 10 years in electrifying its vehicle lineup and developing software technology to further accelerate the company’s electrification efforts. The figure includes both investments in R&D and other avenues. The company’s total R&D budget for the period is approximately $64 billion (8 trillion yen).

The Japanese automaker aims to become carbon neutral for all products and corporate activities by 2050.

Honda sells approximately 30 million units of mobility products every year, including automobiles, motorcycles, power products, outboard motors, and aircraft. Given the sheer volume of products it offers, “Honda believes that a multifaceted and multidimensional approach is needed, not a mere replacing of engines with batteries,” the company said on Tuesday.

“Including the utilization of swappable batteries and hydrogen as well as electrification of automobiles, Honda will offer a variety of solutions for all of its mobility products according to how its customers use the products in various countries and regions.”

Honda reiterated plans to work with General Motors Co. in the U.S., making use of the latter’s Ultium batteries. Earlier this month, Honda and GM announced plans to produce “millions” of EVs, starting in 2027. Two mid to large-size EVs from Honda — developed in partnership with GM and the company’s first all-electrics — will make their U.S. debut in 2024.

Honda expects to launch its first EV in Japan by 2024, and plans to introduce a total of 10 new EV models in China by 2027. The carmaker will work with CATL for EV batteries in China, while it will procure batteries from Envision AESC in its home country of Japan.

Last month, Honda signed a memorandum of understanding with fellow Japanese giant Sony for a joint venture to develop and sell battery-powered electric vehicles.

As for its own battery technology, Honda is working on developing several all-solid-state batteries. The company will build a $340 million (43 billion yen) demonstration line for its own batteries by Spring 2024.

Honda hopes to start adopting its own Honda e: Architecture, an EV platform that combines hardware and software, by 2026.

For production, Honda is planning to build two dedicated EV plants in China — one in Guangzhou and another in Wuhan, as well as an EV production line in North America. The automaker also has plans for various high-capacity EV battery plants across the globe.

The Japanese carmaker also announced two all-electric sports cars — a specialty model and a flagship model — that will launch globally, noting that “Honda strives to realize the joy and freedom of mobility by seeking a zero environmental footprint.”