Honda Motor and battery maker GS Yuasa are planning to jointly build a new facility in Japan to produce electric vehicle (EV) batteries, with an investment of nearly Y400bn ($3bn), reported Nikkei.
The Japanese companies will form a joint venture (JV) to construct a lithium-ion battery factory.
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People familiar with the development report that the proposed facility is expected to have a production capacity of at least 20GWh.
According to Nikkei, a JV that the companies formed in January 2023 will be crucial in the development of batteries, materials, and capital investment.
Furthermore, the Japanese Government would pay Y159bn ($1.2bn) in subsidies to Honda Motor and GS Yuasa to help their efforts to produce batteries.
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Japanese Trade Minister Yasutoshi Nishimura was quoted by Bloomberg as saying: “We will keep taking steps to have a stable supply of semiconductors and batteries.”
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