Honda Announces Plan to Invest $40 Billion Into Electrification Goals
【Summary】The massive investment is to help the Japanese automaker phase out gas-powered vehicles by 2040 and to become carbon neutral.
Honda is one of the largest automakers in the world, but it has been slow to electrify its lineup. The Japanese brand doesn't sell a single all-electric vehicle in the U.S. At the moment, Honda has four electrified vehicles in its lineup, but with the recent discontinuation of the Clarity Fuel Cell (it's still available to lease throughout 2022) and, more recently, the Insight,
Honda only has two electrified vehicles on sale in the U.S. Compared to other brands, the automaker is well behind. Honda is looking to change that with a massive investment of $40 billion over the next 10 years.
Honda Looks To Play Catch Up
The large amount of money will go toward coming out with 30 all-electric vehicles globally by 2030. By that time, Honda also hopes to be able to build 2 million electric cars annually. The overarching goal for Honda is to have electric cars account for 40 percent of its lineup by the end of the decade. To reach its goal, Honda claims that its short-term plan includes working with outside partners and its long-term plan involves developing its own technology in-house.
Unlike other automakers, Honda's first electric vehicle with the new investment will be an ultra-affordable electric vehicle with a price tag of roughly $8,000. We highly doubt a small electric car at this price point would be available in the U.S.
The first electric vehicle's we'll probably see from Honda in the U.S. under the new plan will include the Prologue and an unnamed EV from Acura. Both of these vehicles are being developed with some help from General Motors using the American automaker's Ultium battery tech. Honda will also come out with two new electric sports cars around 2025 with one being a flagship model that will most likely replace the Acura NSX.
Honda's Getting Some Help
In addition to coming out with more EVs, Honda also announced that it will be spending approximately $343 million on a demonstration line that will come out in the spring of 2024 to produce solid-state batteries. Until then, Honda will source lithium-ion batteries from GM for EVs in North America.
"From 2030 and beyond, we believe that we will be entering into the full popularization period, and battery EVs will be commonplace," Mibe said. "We will have small, medium and large-sized platforms in place and cover all the segments with these three platforms."
Vineeth Joel Patel
Joel Patel has been covering all aspects of the automotive industry for four years as an editor and freelance writer for various websites. When it comes to cars, he enjoys covering the merger between technology and cars. In his spare time, Joel likes to watch baseball, work on his car, and try new foods
2023 Jeep Grand Cherokee Trailhawk Now PHEV Only
Acura Prevision EV Concept Previews Brand’s Electric Future
Hyundai Gets Serious About Electric Performance Cars, Shows off Two Concepts
Ford Looks to Have 100% of EV Sales Be Online
Volkswagen CEO Believes It Will Overtake Tesla in EV Sales by 2025
Report Claims Nissan Leaf Will Be Discontinued by 2025
Autonomous Vehicles Will Require Cities to Change Their Transportation Methods
Rivian, Mercedes-Benz Partner to Produce Electric Commercial Vans
- Tesla Raises Prices in the U.S. as Inflation Chips Away at its Profit Margins
- Toyota to Collaborate with Redwood Materials to Build a Closed Loop, EV Battery Recycling Ecosystem in the U.S.
- Struggling Electric Vehicle Startup Faraday Future Signs Deal to Raise up to $350 Million in Financing to Help it Stay Afloat
- Uber and its Technology Partner Aurora to Expand Autonomous Trucking Pilot in Texas
- Toyota Unveils the 2023 Crown, a Lifted Hybrid Sedan With 340 HP
- EV Startup Fisker Inc. Hires BMW Exec as Senior VP of Manufacturing, Aims to Build One Million EVs a Year by 2027
- Tesla’s Enhanced Autopilot Returns With Some Features From 'Full Self-Driving'
- Mercedes-Benz Begins Production of the Highly Anticipated EQS Electric SUV in Alabama
- Tesla’s Battery Supplier Panasonic is Working on New EV Battery Technology That Can Boost Range by 20%
- Tesla Rival NIO Reports a Record 31,607 Electric Vehicles Deliveries in Q3 as Demand Grows