Honda and Contemporary Amperex Technology Co Limited (CATL) have signed an agreement to form a comprehensive strategic alliance on new energy vehicle (NEV, China’s term for EVs and PHEVs) batteries. This is to strengthen their strategic partnership and popularise electrified vehicles.

This agreement will 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.

The agreement includes Honda’s gesture of acquiring approximately 1% of Shenzhen-listed CATL’s shares, which makes the carmaker “a leading strategic partner of CATL”. This will enable Honda to secure a stable supply of batteries with excellent product and cost competitiveness, the companies say.

The first Honda model equipped with a CATL battery is scheduled to be launched in China in 2022. The alliance will be further expanded to the global level in the future, both parties say. In addition, Honda and the Ningde-based lithium-ion battery maker will conduct joint development on NEV batteries and joint R&D into fundamental technologies for the future.

“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,” said CATL president Zhou Jia.

“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 Honda new strength, and we believe that our long-term alliance will enable Honda to further increase the competitiveness of our electrified products. Honda will continue its challenges toward offering joy and freedom of mobility and the realisation of a sustainable society,” said Toshihiro Mibe, Honda’s senior managing officer and executive in charge of monozukuri.