Honda’s dual-track strategy: balanced development of hydrogen fuel cells and pure electric vehicles

Honda and General Motors have achieved a new breakthrough in their cooperation in the field of hydrogen fuel cell technology. They will start producing a new generation of hydrogen fuel cell system this year, which is jointly developed by both parties; and plan to gradually expand this system before 2030. sales of battery systems to expand its hydrogen energy business. A new generation of hydrogen fuel cell systems will more than double the durability while reducing costs by two-thirds.

In addition, Honda Motor also plans to apply this technology to a wider range of fields, including commercial vehicles, stationary power supplies, and construction machinery. Honda aims to increase annual sales of next-generation hydrogen fuel cell systems to about 2,000 units around 2025 and to 60,000 units in 2030.

As to why Honda still insists on fuel cell technology and how its subsequent pure electric strategy will unfold, this article provides some analysis on these issues.

The fuel cell business is hard to give up

Many people have never understood why Japan, South Korea and even Germany have not given up on fuel cell technology. It is obvious that the development path of pure electric vehicles and chemical energy storage is very clear. In fact, these three industrial powers have invested a lot of resources in the field of fuel cells because of their social energy structures. Compared with China and the United States, the size of Japan, South Korea and Germany limits the development of solar and wind energy, and they also lack coal and natural gas reserves to support thermal power generation. Therefore, when developing clean energy, these countries need to consider the source of electricity.

Note: Taiwan also faces similar problems. After the world gradually abandons nuclear power, the search for sustainable energy has become particularly important.

The hydrogen energy cycle starts from renewable energy and is divided into three links: "production", "storage and transportation" and "use". Converting "electricity" from renewable energy into "green hydrogen" through water electrolysis technology can reduce fluctuations in power generation caused by seasonal or weather effects. In addition, green hydrogen can be delivered to the point of demand in an appropriate manner via land/sea transportation or pipeline transportation.

Therefore, in Japan, Toyota and Honda have always insisted on developing fuel cell technology and applied fuel cell systems to FCEVs and various scenarios inside and outside the company, thereby playing a role in the "use" of hydrogen energy.

From a strategic perspective, Honda applies fuel cell systems to four main areas: FCEV, commercial vehicles, stationary power and construction machinery. Because hydrogen can be stored and transported at high density and recharge time is short, fuel cell systems have high availability. In the early stage of the layout, Honda will develop its business for B2B customers.

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• Honda plans to launch a new FCEV in North America and Japan in 2024, which has the characteristics of short charging time and long driving distance, while also combining the convenience of pure electric vehicles.

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• In Japan, Honda and Isuzu Motors are jointly researching fuel cell heavy-duty trucks and conducting road demonstration tests in 2023. In China, Honda and Dongfeng Motor have cooperated to launch technical verification of new generation fuels in the commercial vehicle field in Hubei Province.

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• Honda proposes to promote fuel cell systems as emergency power sources. Fuel cells have the advantage of being clean and quiet when generating electricity, and will be used in Honda's factories and data centers around the world.

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• In the field of construction machinery, Honda will apply fuel cell systems to excavators and wheel loaders.

Where will pure electric vehicles go?

But the development of hydrogen fuel cells does not mean that Honda will give up its current mainstream pure electric route. In April this year, Honda sorted out its electrification transformation and took the following measures:

Planning for electric vehicle and FCV sales

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• By 2030, Honda will increase the annual production of pure electric vehicles to more than 2 million units. By 2040, sell pure electric vehicles and fuel cell vehicles globally and increase the proportion to 100%.

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• North American market: In 2024, the models "PROLOGUE" and "ZDX" jointly developed with General Motors will be launched, and in 2025, medium and large pure electric vehicles using the new E&E architecture will be launched.

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• Chinese market: "e:NS2" and "e:NP2" will be launched in 2024, and a total of 10 pure electric vehicles will be launched by 2027. By 2035, pure electric vehicles will account for 100% of sales.

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• Japanese market: A light commercial pure electric vehicle based on "N-VAN" will be launched in 2024, a pure electric vehicle based on "N-ONE" will be launched in 2025, and two small pure electric vehicles including an SUV version will be launched in 2026. Of course, it's unclear whether these models can take hold in the market. Book

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• Tian has positioned the three existing factories in Ohio, USA, as the core production base for pure electric vehicles in North America, and built a carbon dioxide emission reduction technology system at the Saitama Manufacturing Vehicle Factory in Japan, aiming to build the first carbon-neutral factory by 2025.

Cooperation mode

Honda still relies on outside sources for electric vehicles. In order to promote electrification, Honda has established strategic partnerships with various partners.

In terms of battery procurement and development, Honda will cooperate with a number of battery companies, strengthen external cooperation with liquid lithium-ion batteries , purchase battery resources such as rare metals, and plans to launch new-generation batteries such as semi-solid and all-solid-state batteries in the second half of the 2020s. .

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• North America: Purchasing the "Ultium" platform from General Motors and establishing a joint venture with LG Energy to ensure battery supply.

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• China: Strengthening cooperation (procurement) with Contemporary Amperex Technology (CATL).

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• Japan: Purchase batteries from Envision AESC for use in light commercial pure electric vehicles.

In the field of battery resource procurement and resource recycling, Honda will work with its partners to increase measures, actively utilize recycled resources, and strive to achieve zero environmental load.

In the field of software, Honda will accelerate software development to promote software-defined mobility, further optimize electronic and electrical architecture, promote Honda's independent development of vehicle operating systems, and continuously promote the optimization and upgrade of in-vehicle software.

summary

Taken together, Honda has adopted a balanced strategy, actively developing hydrogen fuel cell technology while striving to catch up with the trend of the electric vehicle market. But Honda faces a very arduous task in the future: in the field of fuel cells, Honda relies on independent development and has leading advantages; while in terms of electrification, Honda relies on external forces and strives to find a balance in the market.