Honda to compete in the electric vehicle market with $64B R&D investment

Honda Motor is revving up its electric vehicle business to be able to compete in the growing EV market worldwide. For its ambitions, the Japanese automaker is planning to invest $64 billion or ¥8 trillion for its research and development unit over the next 10 years.

With its investment, Honda Motor is hoping to produce and launch more than 30 units of EV models by the year 2030, globally. As per Reuters, the company's R&D investment plan and goals were laid out during a presentation that took place on Tuesday, April 12.

The parading of the plans marks the automaker's push in stepping up its game in the fast-growing market for electric vehicles. Honda is determined to boost its R&D as the Japanese car manufacturers may fall behind newer brands such as Tesla which has been launching cutting-edge models.

The company further revealed it is also planning to make around two million electric vehicles per year by 2030. A large part of the investment will be directed to electrification and software technologies, and Honda will inject around ¥43 billion into a demonstration line for the production of solid-state batteries, which is expected to begin in the Spring of 2024.

CNN Business reported that Honda will be producing a mini-car and two sports utility vehicle models for its EV goals for 2030. The ultimate aim is to boost production to over two million electric cars per year.

For its so-called "solid-state batteries," Honda Motor said this will offer a longer travel range compared to lithium-ion batteries that are commonly used in EVs today. It will focus on developing this battery that was described to be lighter and charge more quickly.

Finally, the firm already put in ¥43 billion or around $343 million in the development of its own brand of solid-state batteries. Honda is aiming to release these to the market in the second half of this decade. While it is still making the batteries, Honda will be using the lithium-ion type in the meantime and will secure partners for the supply.