Honda and Mitsubishi join forces for secondary use EV battery businesses - V2G, recycling

In an important move towards reducing waste EV batteries, Honda Motor Co., Ltd. (Honda) and Mitsubishi Corporation (MC) have inked a memorandum of understanding (MoU to explore new business opportunities in secondary use of spent EV batteries.

Not to be confused with Mitsubishi Motors Corporation (MMC), which sells cars, Mitsubishi Corporation (MC) is a conglomerate with interests ranging from trading to electrical appliances to industrial equipment and even energy.

Mitsubishi Corporation has stakes not only in Mitsubishi Motors, but also Isuzu. With that cleared up, let’s get back to the topic in focus.

Battery Lifetime Management Business - energy storage and recycling

One of the key initiatives under this partnership is the Battery Lifetime Management Business. This venture is designed to extract maximum value from the batteries slated for installation in Honda's upcoming mini-EV models (likely the Honda N-Van EV), set to debut in Japan in 2024.

Utilizing an advanced battery-monitoring system, this business will focus on optimizing the lifespan and value of each battery. These batteries, once retired from powering EVs, will find a second life as stationary energy storage solutions – which is a technical term for what is essentially a giant power bank for solar / wind farms, storing excess power to be used when output from sun / wind is low.

Smart Charging and V2G Energy Management Business

Another aspect of this collaboration is the Smart Charging and V2G (Vehicle to Grid) Energy Management Business.

EV users will benefit from services that help them optimize/ reduce their electricity bills. This will involve offering access to smart-charging capabilities, V2G services, and green (renewable) power options. These smart charging services will automatically adjust the timing of EV charging to avoid peak load periods and optimize energy consumption.

V2G technology enables EVs not only to draw power from the grid but also to supply (or even sell) excess electricity back to the grid, thus reducing household electricity bills.

Toshihiro Mibe, Global CEO of Honda Motor aid “Preparing for the era of full-fledged popularization of EVs, Honda will not only sell EVs, but take a proactive approach to energy management, where EV batteries will be utilized as an energy source, and we are also focusing on resource circulation, including the reuse and repurposing of EV batteries, which contain various rare resources. Starting with this initiative with MC in the area of mini-EVs in Japan, Honda will strive to maximize the value we offer to our customers and build a foundation for sustainable business from a long-term perspective, while working with a variety of partners and accommodating the unique market characteristics of each region.”

Katsuya Nakanishi, President & CEO of Mitsubishi Corporation said, “We understand that the convergence of different sectors such as mobility, energy, services and data is an irreversible trend. Examples can be seen all over the world, as companies seek to go carbon neutral, and new business models like MaaS and CASE (in the automobile industry) pick up stream. MC is aiming to develop its own new business models that balance electrification and decarbonization, to create new cross-industry services, and otherwise reinventing ourselves in keeping with the times.”