Honda To Form JV With Chinese Companies For Battery Supply: Reuters

Honda Motor Co Ltd’s HMC Chinese unit plans to form a joint venture with automobile manufacturers Dongfeng Motor Group and Guangzhou Automobile Group, Reuters reported.
The move is expected to facilitate battery procurement for Honda’s electric vehicles.
Honda will invest 50% into the joint venture, while Dongfeng and Guangzhou will each invest 25% into it.
The company’s Chinese joint ventures, Dongfeng Honda and Guangqi Honda, currently get batteries separately from CATL.
Honda has also decided to further expand its partnership with CATL for stable battery supplies.
The company had partnered with trading company Hanwa Co for metal supply used in EV batteries.
Price Action: HMC shares closed lower by 2.29% at $25.57 on Tuesday.
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