The Nikkei newspaper reported on Thursday that Japanese automaker Honda Motor Co Ltd and battery manufacturer GS Yuasa Corp will collaborate and invest over 400 billion yen ($2.99 billion) to build batteries for electric vehicles (EVs) and residences.
The corporations will begin by constructing a new facility in Japan with a minimum 20 gigawatt hours (GWh) of production capacity, the Nikkei stated without identifying any sources.
According to the Nikkei, a joint venture that the businesses announced in January will be crucial in the development of batteries, materials, and capital investment.
The newspaper also stated that the 150 billion yen subsidy would come from Japan’s Ministry of Economy, Trade, and Industry without saying if it would be used only for the factory’s construction.
A government official and a Honda representative both told Reuters that the report was not anything they had announced and that they were unable to comment at this time. GS Yuasa could not be reached right away after regular business hours.