Honda invests in China to jointly develop EV batteries

Honda will buy a 1 percent stake in Chinese electric vehicle battery maker Contemporary Amperex Technology and the two will develop EV batteries. (Reuters)
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Updated 11 July 2020

Honda invests in China to jointly develop EV batteries

  • Auto manufacturer and battery maker join forces in pursuit of an electric future

BEIJING: Japan’s Honda Motor will buy a 1 percent stake in Chinese electric vehicle (EV) battery maker Contemporary Amperex Technology (CATL) and
the two will jointly develop EV batteries, the companies said.

The move comes at a time when auto manufacturers and EV battery makers are joining forces in pursuit of an electric future. CATL, based in Ningde, said last year that it would develop batteries with Honda and also supply batteries to Tesla, Toyota and Volkswagen.
Honda and CATL said they would develop battery technologies and research a battery recycling business. Honda will launch its first EV with CATL’s battery in China in 2022 and will expand the partnership with stable EV battery supply globally in the future.

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Honda started selling its first all-battery EV, the Everus VE-1 SUV crossover, in China last year.

Honda has struck a number of partnerships to make electric cars, including a joint venture with China’s GAC under which the Japanese automaker began selling its first all-battery EV, the Everus VE-1 SUV crossover, in China last year.
It has also tied up with Hitachi’s auto parts subsidiary to develop, produce and sell motors to be used in petrol hybrids, plug-in hybrids and battery electric cars.
For the North American market, Honda has partnered with General Motors to develop two new EVs. The two are also working to develop hydrogen fuel cell vehicle technology.
CATL is building a battery plant in Germany and is considering expanding to North America. It has an office in Yokohama near Tokyo. Its Shenzhen-listed shares closed at about $28.54 on Friday.


Turkey on brink of recession as economy collapses

Updated 26 min 59 sec ago

Turkey on brink of recession as economy collapses

  • Consumer debt has increased by 25 percent to more than $100 billion in the past three months

JEDDAH: President Recep Tayyip Erdogan’s popularity is plunging in lockstep with Turkey’s collapsing economy and the country is on the verge of a potentially devastating recession, financial experts have told Arab News.
The value of the Turkish lira has fallen to 7.30 against the US dollar and the central bank has spent $65 billion to prop up the currency, according to the US investment bank Goldman Sachs.
Consumer debt has increased by 25 percent to more than $100 billion in the past three months as the government moved to help families during the coronavirus pandemic, but the result has been a surge in inflation to 12 percent.
With the falling lira and increased price of imported goods, the living standards of many Turks who earn in lira but have dollar debts have fallen sharply.
The economy is expected to shrink by about 4 percent this year. The official unemployment rate remains at 12.8 percent because layoffs are banned, although many experts say the real figures are far higher.
To complete the perfect storm, tourism revenues and exports have been decimated by the pandemic, and foreign capital has fled amid fears over economic trends and the independence of the central bank.
Wolfango Piccoli, of Teneo Intelligence in London, said logic dictated an increase in interest rates but “this is unlikely to happen.”
Piccoli said central bank officials would strive to avoid an outright rate hike at their monetary policy meeting on Aug. 20. “A mix of controlled devaluation and backdoor policies, such as limiting Turkish lira’s liquidity, remains their preferred approach,” he said.
There is speculation of snap elections, and Erdogan’s view is that higher interest rates cause inflation, despite considerable economic evidence to the contrary.