FUZHOU, July 10 (Xinhua) -- Japanese automaker Honda will buy a one-percent stake in Contemporary Amperex Technology Co. Limited (CATL), China's largest lithium-ion battery maker, the two companies announced on Friday.
The companies said in a joint statement that they would jointly develop EV battery technologies, and expand discussions on battery recycling, and reuse business.
Honda's first model equipped with a CATL battery is scheduled to be launched in the Chinese market in 2022. This alliance will be further expanded to the global level with a stable EV battery supply in the future.
According to the statement, Honda will acquire the CATL shares through the non-public issuance of stocks to become a leading strategic partner of CATL. This will enable Honda to secure a stable supply of batteries.
Zhou Jia, president of CATL, said through the cooperation, the two companies would establish a stronger global partnership to deliver more competitive products and solutions to global electrification.
Headquartered in Ningde, east China's Fujian Province, CATL has inked supply contracts with a slew of global car manufacturers including BMW, Volkswagen, Daimler, and Tesla.
The battery giant reported a 28.6-percent year-on-year growth in net profit in 2019.