Honda and GS Yuasa to Invest Nearly $3 Billion in Battery Plant

Japanese automaker Honda and battery maker GS Yuasa will invest more than 400 billion yen ($2.99 billion) in a partnership to produce batteries for electric vehicles and for home use, according to a foreign media report.
The two companies will build a new factory in Japan with a target capacity of at least 20 GWh, the report said, adding that the joint venture, announced in January, will play a central role in battery and materials development, as well as capital investment.
The report said that Japan's Ministry of Economy, Trade and Industry would provide Honda and GS Yuasa with a subsidy of around 150 billion yen, but did not specify whether the money would only be used to build the plant.
The Japanese government designated batteries as a strategically critical product in December last year and sees domestic development and production of batteries as key to economic security. Honda and GS Yuasa will be the first companies to receive battery-related subsidies.
To date, many battery-related companies have invested heavily in China, the world's largest market for electric vehicles, and the United States, which is stepping up its efforts to secure investment from battery companies. Japan aims to increase its competitiveness in this area by supporting domestic production.
A Honda spokeswoman told the media that the news was not an official announcement by Honda, so the company could not respond. An official from Japan's Ministry of Economy gave the same response. GS Yuasa could not be immediately contacted by foreign media as it was out of normal office hours.