Japan's Honda Motor Co Ltd will pick up a 1% stake in electric vehicle (EV) battery maker Contemporary Amperex Technology (CATL) and the two will jointly develop EV batteries, the Chinese firm said in a filing on Friday.
The move comes at a time when auto manufacturers and EV battery makers are tying up in the pursuit of an electric future. Ningde-based CATL last year said it would develop batteries with Honda, and that it would supply batteries to Tesla, Toyota and Volkswagen AG.
Also Read: Honda And GM To Jointly Develop Next-Gen Electric Vehicles
The upcoming Honda e, will be the first Honda to be built on a dedicated EV platform
Honda and CATL will develop battery technologies and research battery recycling business, CATL said in its filing.
Honda has struck a number of partnerships to make electric cars, including a China joint venture with GAC under which the Japanese automaker began selling its first all-battery EV, the Everus VE-1 SUV crossover, in China late last year.
Also Read: Honda's EV Journey In India To Begin With Hybrid Technology
It has also tied up with Hitachi Ltd's auto parts subsidiary to develop, produce and sell motors to be used in petrol hybrids, plug-in hybrids and battery electric cars.
For the North American market, Honda has partnered with General Motors Co to develop two new EVs. The two are also working to develop hydrogen fuel cell vehicle technology.
CATL shares closed at around 200 yuan ($28.54) on Friday.
