Honda Looks To Spend $40 BILLION On Developing Electric Cars

Honda has reiterated its desire to fully enter the burgeoning EV market, and it plans to spend an insane amount of money to do so.

According to a report by Bloomberg, the Japanese automaker is looking to invest an astronomical $40 billion in the development of electric cars for the next decade. The company plans a total of 30 different EV models by 2030 while also looking to produce over 2 million vehicles every year.

This announcement comes after last year's decision to phase out the sales of its gas-powered cars by 2040. By doing so, Honda became the first Japanese automaker to make its "green" initiatives public. Furthermore, the decision was also made due to a few obvious factors.

One of the biggest reasons for this massive investment is Honda's plans to "double down" on China. The Asian powerhouse is home to the world's largest EV market so far, possessing a 53% share of the global market (via TheDriven). They're already planning to release 10 EV models under the e:N Series within the next five years there, as a way of gaining a foothold in the market.

This also follows the Japanese automaking giant's recent partnership with General Motors (GM). Announced just this month, the deal will have Honda and GM "co-developing" affordable electric cars to be released by 2027. This is very much in line with both companies' recent forays into the EV market-though GM's is a bit less pronounced than Honda's.

The US-based automaker hasn't pushed out any electric cars of its own, for one. But they are at the forefront of developing the likes of Ultium, a new EV battery technology which promises between 50-200 kWh of capacity and a range of as much as 400 miles on a full charge (via the GM newsroom). For now, the company is also partnered with LG to help it mass-produce Ultium cells.

But whether these cells will be powering a future Honda EV remains up in the air. Though there are already two models being built as part of the teamup: the Honda Prologue and an electric version of the Acura SUV.

Honda's Massive 'Culture Change'

For decades, the big Japanese automaker has had a culture of "going it alone" when it comes to their business. But eventually, the company's brass may have realized that breaking into the EV industry (projected to grow to $823 billion by 2030, via PRNewsWire) will require some aid from those who already know what they're doing.

GM is one of the best partners for this case, as illustrated by their Ultium cell technology. But they're far from the only one, as Honda has also teamed up with Sony to produce electric cars releasing as soon as 2025. That specific joining-of-forces will have the automaking and electronics giant unveil a so-called "New Company," whose sole purpose will be to design, develop, and sell their upcoming EV models.

The "New Company" joint venture will support Honda's drive to break into the EV market using Sony's expertise in imaging, sensing, telecoms, and entertainment tech (via the Honda newsroom).

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Written by RJ Pierce