Honda Joins Global Electric Vehicle Race

Honda is joining the global race for electric vehicle (EV) dominance by announcing an investment of almost $40 billion to electrify its fleet of cars in the next decade.

The Japanese automaker’s stock price was unchanged on the Tuesday announcement, but it stopped the Nikkei from dropping further than 1.8% on the day.

The investment also includes a budget for software as well as research and development. Honda wants to launch 30 new electric vehicle models, including two SUVs and a mini car, by 2030. 

The manufacturer plans to ramp up production to more than two million EVs annually. The company wants to focus its development priorities on multi-alloy solid-state batteries that are lighter and faster to recharge than lithium-ion batteries.

Honda is joining the electric motor vehicle race later than many of its global rivals. Volkswagen, Hyundai and Toyota have each put up at least $35 billion for EVs to future-proof their lineups.

What does this mean for me? 

After the COP26 Climate Change Conference last year, many nations and individual companies made ambitious pledges to phase out fossil-fuel technologies. This latest announcement from Honda is not new, but rather one of many moves by major brands in all industries to “clean” up their act.

As a commodities trader, you should be carefully watching the progress of minerals that contribute to building green-energy technologies, as these will surely have their day in the sun with the world now going green.