Hans Greimel Automotive News December 17, 2008 - 12:46 pm ET
TOKYO -- Honda Motor Co. finally has found a lithium ion battery partner.
After long standing on the sidelines as Japanese rivals formed their own joint ventures, Honda President Takeo Fukui said today that his company will team with Japan's GS Yuasa Corp.
The partners will form a company in the spring to manufacture next-generation lithium ion batteries for Honda's gasoline-electric hybrid vehicles. The company, which has yet to be named, will be 51 percent owned by GS Yuasa and 49 percent owned by Honda.
Lithium ion batteries are seen as the key to making hybrid and electric vehicles more popular because they are lighter and more powerful than the nickel-metal hydride batteries used in the Toyota Prius and Honda Civic Hybrid.
In the scramble to pioneer the technology, Toyota Motor Corp., Nissan Motor Co. and Mitsubishi Motors Corp. have each formed lithium ion joint ventures. Honda had remained uncommitted, saying the technology was in its formative stage.
Some had questioned Honda's ability to secure a supply of the critical technology without a dedicated partner. Fukui said the automaker settled on GS Yuasa after a year of study.
The Kyoto-based battery maker already has a lithium ion joint venture with Mitsubishi Motors, called Lithium Energy Japan. But GS Yuasa President Makoto Yoda said that is not a conflict because GS Yuasa makes electric-vehicle batteries for Mitsubishi, not hybrid batteries.
Whereas Mitsubishi's electric-vehicle batteries need large energy storage capacity, Honda's hybrid batteries can be smaller but need faster charging and discharging rates.
Toyota has a lithium ion joint venture with Panasonic Corp. called Panasonic EV Energy Co. Nissan and NEC Corp. make the batteries through Automotive Energy Supply Corp.
Honda still will use nickel-metal hydride batteries supplied by Panasonic and Sanyo Electric Co. in its Insight hybrid, to be launched next year. Fukui would not say what models will be outfitted with lithium ion power packs or when they will enter production.
Honda and GS Yuasa will each spend ¥7.5 billion ($85.2 million) on the new company.
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