Honda and Mitsubishi Corporation (MC) have announced plans to establish a new 50/50 joint venture (JV) company, ALTNA Co., Ltd., in July 2024. The new JV is based on the memorandum of understanding (MoU) the two companies signed in October 2023 to begin discussions toward the creation of new businesses in light of anticipated growth in the electric vehicle (EV) market toward a decarbonized future society.

The two companies decided to establish a joint venture company and work together to address challenges toward the societal implementation of EVs and the realization of decarbonized society such as the following:

• Optimization of EV usage cost;

• Enhancement of the lifetime value of batteries, which contain various limited resources, and improvement of resource circulation within Japan; and

• Accommodation of the increasing demand for adjustment capacities through grid storage batteries toward an increase in the proportion of renewable energy in the energy mix in Japan.

By combining Honda control and connected technologies for EVs and batteries and MC power-generation know-how, which extends to the administration of storage-battery systems and smart-charging operations, the two companies say ALTNA will strive to offer new mobility services that reduce the total cost of ownership for EV users and create new power-supply operations that enable long-term utilization of EV batteries.

Toshihiro Mibe, Director, President and Representative Executive Officer of Honda, said: “With an eye toward the future popularization of EVs, Honda is working toward the establishment of a vertically-integrated EV value chain that includes all aspects of EV business, from the procurement of raw materials to the production of finished EVs, as well as the repurposing and recycling of EV batteries.

“We are very pleased to establish a new company with MC, which has deep knowledge of electric power business and shares our aspiration to realize a decarbonized society. Starting with N-VAN e:, we will take a proactive approach to establish a sustainable business foundation not only for the sales of EVs as mobility products, but also to create an optimal EV business environment including full utilization of batteries, which we believe will be critical for the popularization of EVs.”

Battery leasing business

In collaboration with affiliated leasing companies of Honda and MC, ALTNA will begin sales of lease plans, starting with the Honda N-VAN e:, new commercial-use mini-EVs Honda is planning to launch in October 2024.

When a vehicle is leased to a customer, ALTNA will retain ownership of the battery and monitor battery usage during the lease period. Continuous monitoring of the battery conditions, including predictions of future battery deterioration, will enhance the reliability of the battery measured by various parameters, including the battery state of health.