Honda and Mitsubishi Corporation to Establish New Joint Venture, ALTNA Co., Ltd.
Honda and Mitsubishi Corporation (MC) have unveiled plans to form a new 50/50 joint venture company named ALTNA Co., Ltd. (ALTNA), set to launch in July 2024. This initiative stems from a memorandum of understanding (MoU) signed by both companies in October 2023, aiming to develop new business ventures to support the anticipated growth of the electric vehicle (EV) market and the push towards a decarbonized society.
Objectives of Honda and Mitsubishi
The new company, ALTNA, will tackle key challenges in the EV sector and contribute to the realization of a decarbonized society by focusing on:
Optimizing EV Usage Costs: Reducing the financial burden on EV users through innovative business models and services. Enhancing Battery Lifetime Value: Improving resource circulation in Japan by extending the life and utility of EV batteries. Supporting Renewable Energy Integration: Utilizing grid storage batteries to meet the rising demand for renewable energy and enhance grid stability.
By leveraging Honda’s advanced control and connected technologies for EVs and batteries alongside MC’s expertise in power generation and battery storage systems, ALTNA aims to offer new mobility services that lower the total cost of ownership for EV users and create sustainable power supply operations.
ALTNA’s primary business ventures will include:
1. Battery Leasing Business
ALTNA will collaborate with affiliated leasing companies of Honda and Mitsubishi to launch lease plans, starting with the Honda N-VAN e:, a new commercial-use mini-EV set to debut in October 2024. ALTNA will retain ownership of the batteries and continuously monitor their condition throughout the lease period, ensuring high reliability and predicting future battery deterioration.
Lease Plans:
N-VAN e: Value Plan: A closed-end lease plan offered exclusively through Honda’s online new vehicle store, Honda ON. This plan, available from October 10, 2024, will feature competitive pricing by considering the future repurposing of the batteries.
N-VAN e: Circular Lease Plan: In collaboration with Mitsubishi Auto Leasing Corporation (MALC), this economical closed-end lease plan will include comprehensive customer support through MALC’s EV consultation program, “EV4CHANGE,” addressing challenges from fleet electrification to charging infrastructure setup.
2. Battery Repurposing Business
ALTNA will repurpose end-of-life EV batteries for grid storage, providing supply-demand adjustment capacities to stabilize the grid and promote renewable energy use. The company will ensure the recycling of end-of-life grid storage batteries to support resource circulation-oriented manufacturing.
3. Smart Charging Business
ALTNA will offer EV charging plans that optimize electricity costs by using advanced energy-control technologies to avoid peak-hour charging. This smart charging system will automatically schedule EV charging during off-peak times, reducing costs and promoting the use of surplus renewable energy.
Additionally, ALTNA plans to explore Vehicle-to-Grid (V2G) services, allowing EVs to supply electricity back to the grid, enhancing energy efficiency and supporting the electricity market.
Leadership Perspectives
Toshihiro Mibe, Director, President, and Representative Executive Officer of Honda, stated, “With the future popularization of EVs in mind, Honda is committed to establishing a comprehensive EV value chain, from raw material procurement to EV production, and the repurposing and recycling of EV batteries. We are thrilled to partner with MC, which shares our vision of a decarbonized society. By starting with the N-VAN e:, we aim to build a sustainable business foundation that not only focuses on EV sales but also optimizes the entire EV ecosystem.”
Katsuya Nakanishi, Representative Director, President, and CEO of MC, commented, “We are excited to collaborate with Honda, known for its technological excellence and dedication to resource circulation. Our new joint venture will introduce a novel business model that separates vehicle and battery ownership, integrating mobility, energy, services, and data. Through our broad industrial network and expertise, we will strive to achieve a carbon-neutral society by advancing the societal implementation of EVs.”
Conclusion
ALTNA Co., Ltd. represents a significant step towards advancing the EV market and fostering a sustainable, decarbonized future. By combining the strengths of Honda and Mitsubishi Corporation, ALTNA aims to revolutionize the EV landscape with innovative solutions and services that enhance user experience and environmental impact.