Honda (HMC) and GS Yuasa to invest $3b for battery development
The Nikkei news reports Thursday that Honda Motor (NYSE: HMC) alongside battery maker GS Yuasa Corp will invest over 400 billion yen ($2.99 billion) and team up to produce batteries for electric vehicles (EVs) and homes.
The report states that the companies will start by building a new plant in Japan, targeting a production capacity of at least 20 gigawatt hours. A joint-venture, which the companies unveiled in January, will play a central role in the development of batteries and materials as well as capital investment, the Nikkei said.
Japan's Ministry of Economy, Trade and Industry would provide a subsidy of about 150 billion yen, the newspaper added, without specifying whether that would be only for building the factory.
According to Reuters, a Honda spokesperson said the report was not something it had announced, and there was nothing it could answer about it at this point, while a ministry official said the same.
Shares of HMC are up 2.31% in afternoon trading on Thursday.
By Michael Elkins | [email protected]