Honda Reveals $40 Billion Investment In Latest EV Roadmap

Japanese auto giant Honda is transforming its existing business portfolio toward full electrification. Honda is investing upwards of $39.7 billion in electrification and software technologies as the carmaker shifts from a non-recurring hardware sales model to a recurring business that sells hardware and software. Honda is also investing $342 million to accelerate the development and production of solid-state EV batteries while debuting no less than 30 new EV models globally by 2030.

Honda & GM Partnership

Honda is not as tardy as fellow Japanese carmaker Toyota to debut an all-electric vehicle. The retro-styled and lovable Honda e electric hatchback has been on sale in Japan and the rest of Europe since 2020. The Honda e’s compact size and fun-to-drive demeanor drew praises from some, but its 35.5 kWh battery only ekes out 137 miles of range. Honda acknowledges battery procurement is the biggest challenge facing EV makers in the immediate future, so it partnered with General Motors to leverage the American automaker’s Ultium battery technology.

Paving the way for Honda and GM’s newest alliance are two new EV models arriving in 2024. First is an all-new Honda Prologue midsize SUV powered by GM’s Ultium powertrain technology. Next, Honda will unveil a larger Acura SUV using a similar Ultium architecture. And by 2027, Honda wants to introduce affordable EVs in North America with a cost and range as competitive as gasoline-powered vehicles through its collaboration with General Motors.

Not to be confused with the brand’s existing all-electric hatchback, Honda is developing a new EV platform called the Honda e: Architecture. Honda plans to build a dedicated EV production line in North America, similar to how GM has done with its Detroit Factory Zero. The automaker is also investing heavily to fortify its presence in China and wants to establish two new EV plants in Guangzhou and Wuhan.

New Honda Electric Sports Cars

2022 is the final model year for the Acura NSX Type S sport-hybrid supercar, and only 300 units will make it stateside. However, the next-gen NSX will arrive as an all-electric supercar, and it’s bringing along a new specialty sports car to the EV party. Honda claims its latest electric flagship will have a sporty character, while the second sports car could herald the return of Honda’s S2000 or Prelude sports car.

Business Development Operations

Honda currently divides its organization by the products it sells, like cars, motorcycles, and power generators. In 2022, Honda will combine its core businesses into what the automaker calls Business Development Operations to fast-track the development and “cross-domain synergy” of electrified products and services, batteries, mobile power packs, hydrogen, and connected technologies across all Honda products.