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Business deals

China's CATL to supply Honda with EV batteries through 2027

Fujian Province-based company to set up R&D facility for automaker in Japan

A Honda electric-vehicle prototype displayed at a Beijing motor show. The Japanese automaker plans to power its new electric offerings in China with CATL batteries.   © Reuters

TOKYO -- Chinese auto battery maker Contemporary Amperex Technology announced Tuesday that it will partner with Honda Motor to develop lithium-ion batteries, its latest effort to expand its global footprint.

Under an agreement signed Monday, CATL will supply 56 gigawatt hours worth of batteries to Honda through 2027. To aid the Japanese automaker's research and development, the Chinese company will also set up in the first half of this year a facility in Japan's Tochigi Prefecture, one of Honda's R&D hubs.

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