(Yicai Global) Dec. 9 -- Chinese battery giant Contemporary Amperex Technology has signed a seven-year deal with Honda Motor China Investment to supply electric vehicle batteries to the unit of Japanese auto giant Honda Motor.

Honda China will buy 123 gigawatt-hours of power packs from CATL between 2024 and 2030, the pair said in a joint statement yesterday. They have agreed on a basic purchase price and a price adjustment mechanism, Ningde-based CATL noted in a separate announcement.

CATL and Honda China have been working together on the development, supply, recycling, and reuse of new energy vehicle power batteries since 2020.

Honda China did not specify in how many vehicles and models it will equip the CATL power packs, a company insider told Yicai Global. But as the e:NP1, an EV produced by Honda’s China joint venture GAC Honda Automobile, uses 53.6 kilowatt-hour or 68.8 KWh batteries, those from CATL could go into two million of this particular model, based on an average 61.2 KWh.

Honda’s other Chinese JV is China Dongfeng Honda Automobile. To achieve Honda China’s goal to sell 800,000 EVs a year by 2030, both companies set out plans to build a new plant, scheduled to go into production in 2024, with an annual capacity of 120,000 vehicles each.

Honda, which does not sell as many EVs as other carmakers, recently started to push a transition to electric, as China’s NEV market is growing rapidly. Honda China will unveil 10 Honda-branded battery EV models within the next five years and stop bringing out fuel-powered cars after 2030, according to the firm’s EV development strategy released in October last year.

Editors: Tang Shihua, Futura Costaglione