Honda Motor (NYSE:HMC) and Mitsubishi (OTC:MMTOF) have joined forces to investigate potential ventures involving electric vehicle batteries.
The partnership comes in response to the global automotive industry's shift towards battery-powered electric vehicles and the associated environmental concerns once these batteries reach the end of their lifespan.
"Honda will not only sell EVs, but take a proactive approach to energy management, where EV batteries will be utilized as an energy source," said Honda’s CEO, Toshihiro Mibe in a statement.
As outlined in their memorandum of understanding, the companies intend to establish a venture focused on two key objectives: Monitoring the utilization of Honda's mini-EV model battery and repurposing these automotive batteries for stationary energy storage applications.
Additionally, they plan to collaborate on two crucial initiatives: "Smart charging," which optimizes the timing of EV charging for enhanced efficiency; and the "Vehicle to Grid" system, a technology enabling the supply of electricity from EVs to the grid.
This collaboration is expected to yield significant benefits, including reduced electricity costs for consumers and more efficient utilization of battery materials, as noted by the participating companies.
Honda will begin sales of its EV model in Japan in 2024.
Shares of HMC are up 1.12% in mid-day trading on Thursday.