Honda and GS Yuasa to build battery factory in Japan
The two Japanese companies Honda and GS Yuasa are planning a joint battery factory in Japan. Production is said to kick off in 2027. The cell factory is to be built and operated by a joint venture between the two companies that has existed for 14 years.
Blue Energy was founded by Honda and GS Yuasa in 2009, but the joint venture’s batteries have been used mainly in Honda hybrid models and the Toyota RAV4 Hybrid.
The current battery cell factory project is based on the agreement that Honda and GS Yuasa concluded in January this year. At that time, it was stated that the cooperation would focus on the development of the batteries themselves, as well as on production methods for batteries and on establishing a supply chain for critical raw materials.
Now, the construction of the factory is becoming concrete: Blue Energy will invest around 431 billion yen ($3,2 billion) in battery development and construct a production facility in Japan with an annual capacity of 20 GWh. The factory will be commissioned in April 2027, with series production starting in October 2027.
Honda and GS Yuasa will receive 158.7 billion yen (about $1.17 billion) from the Japanese government in subsidies. In total, the Japanese government earmarked 184.6 billion yen ($1.38 billion) in subsidies for eight storage battery-related proposals and up to 56.4 billion yen for two semiconductor-related projects.