The Nikkei news reports Thursday that Honda Motor Co (NYSE: HMC ) alongside battery maker GS Yuasa Corp. (TYO: 6674 ) will invest over ¥400 billion (¥1 = $0.0075) and team up to produce batteries for electric vehicles (EVs) and homes.
The report states that the companies will start by building a new plant in Japan, targeting a production capacity of at least 20 gigawatt hours. A joint-venture, which the companies unveiled in January, will play a central role in the development of batteries and materials as well as capital investment, the Nikkei said.
Japan's Ministry of Economy, Trade and Industry would provide a subsidy of about ¥150B, the newspaper added, without specifying whether that would be only for building the factory.
According to Reuters, a Honda spokesperson said the report was not something it had announced, and there was nothing it could answer about it at this point, while a ministry official said the same.
Shares of HMC are up 2.31% in afternoon trading on Thursday.
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