Honda is planning to invest approximately £60bn in EV production as it gambles on a future “period of full-fledged popularisation of EVs” in 2030.

The company announced this as it reconfirmed its commitment to electric motorcycles and cars restating its target to make EVs and fuel cell electric vehicles (FCEVs) represent 100 per cent of its global vehicle sales by 2040.

As a part of this plan, the company will reduce overall production costs of EVs by approximately 35 per cent and, as of 2030, will reduce the cost of the battery to be procured in North America by more than 20 per cent compared to the cost of current batteries. Honda already believes it can secure enough batteries for the planned production of approximately two million EVs per year.

During a briefing, Honda sounded a note of optimism, saying that: “The environment surrounding automobile electrification is undergoing dramatic changes, and in some regions, the sense of a slowdown in EV market growth is gaining attention. Looking at the trend from a longer-term perspective, Honda is confident that the EV shift will continue to proceed steadily. Without getting too caught up in the current changes in the situation, Honda must look ahead to the period of EV popularisation, which will begin in the second half of the 2020s and build a strong EV brand and a strong EV business from a medium- to long-term perspective.”

Whilst reducing battery costs, the company is also seeking to make EVs lighter, using lighter body frames and lighter and thinner power units based on F1 cars and HEV models. Honda aims to reduce the overall vehicle weight by approximately 100kg compared to initial Honda EVs. There is also scope for greater secondary use and the recycling of EV batteries.

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