The deal announced Thursday is intended to ensure a stable battery supply for an increasing number of full electric vehicles it plans to introduce in the Chinese market, Honda’s China office said.
The batteries will be produced at a plant CATL is set to build in Yichun, a city known for its rich lithium mineral resources in east China’s Jiangxi province, according to the deal.
Honda started to purchase batteries from CATL in 2020.
The Japanese automaker this year launched sales of the first two locally produced models based on a new EV platform -- e:N Architecture F – engineered specifically for China.
The two models, the e:NS1 and the e:NP1, are both compact crossovers. The e:NS1 is built at Honda’s joint venture with Dongfeng Motor Group while the e:NP1 is produced at the Japanese automaker’s partnership with GAC Motor Co.
To improve battery procurement efficiency, Honda established a trading unit in Beijing last month to centralize battery procurement for EVs assembled at the two joint ventures.
Starting with the e:NS1 and e:NP1, it plans to roll out ten e:N Series EV models in China by 2027, Honda said.