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Honda, Mitsubishi V2G joint venture to cut battery costs

Honda, Mitsubishi V2G joint venture to cut battery costs

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By Nick Flaherty



Honda and Mitsubishi are to set up a 50/50 joint venture (JV) company for the management and second use of EV batteries with vehicle to grid (V2G) technologies.

ALTNA is set to start operating in July and will combine control and connected technologies for EVs and batteries from Honda with the power-generation know-how from Mitsubishi using V2G smart-charging.

The joint venture aims to optimize EV usage costs and boost the lifetime value of batteries as well as the second life of the battery packs for grid storage.

ALTNA will sell battery lease plans, starting with the Honda N-VAN e and new commercial-use mini-EVs that Honda is planning to launch in October 2024. When a vehicle is leased to a customer, ALTNA will retain ownership of the battery and monitor battery usage during the lease period.

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Continuous monitoring of the battery conditions, including predictions of future battery deterioration, will enhance the reliability of the battery measured by various parameters, including the battery state of health. ALTNA will support the batteries for a long period of time, or for their entire life cycle, from the time of new vehicle sales through the ownership by second and subsequent owners.

After the end of automotive use, batteries will be recovered and used ALTNA’s grid storage battery business, reducing the initial cost of the battery packs and the Honda EVs by assuming the batteries will be used for a long period of time.

It is also looking at a circular lease plan, establishing fleet electrification plans to setting up charging infrastructure and optimizing vehicle use.  

An electric power business in ALTNA will repurpose end-of-life EV batteries to use as grid storage batteries. This will help manage supply and demand of grid power to enable greater grid stability and also contribute to widespread use of renewable energy. Through its battery leasing business, ALTNA will continuously monitor the use conditions of EV batteries, and then recover end-of-life EV batteries based on data obtained through the long-term monitoring. By fully utilizing such batteries, ALTNA will achieve long-term and stable operation of its grid storage batteries.

Moreover, ALTNA will ensure appropriate recycling of its end-of-life grid storage batteries to realize resource circulation-oriented manufacturing.

ALTNA also will offer EV charging plans that optimize electricity costs for EV users by leveraging advanced energy-control technologies to avoid charging EVs during on-peak hours on the grid. Through the linkage between its energy control system and customer  EVs. Charging will be automatically performed at the time of day when the procurement cost of electricity is lowest according to their vehicle usage schedule.

This will eliminate the customer burden of identifying the optimal charging timing on their own and contribute to the reduction of their EV usage cost. ALTNA’s charging plans will also contribute to the increased use of renewable energy by charging EVs during times when there is a surplus of renewable energy on the power grid.

This will use the vehicle to grid V2G  services with an eye toward the opening up of the electricity market in the future.

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“With an eye toward the future popularization of EVs, Honda is working toward the establishment of a vertically-integrated EV value chain that includes all aspects of EV business, from the procurement of raw materials to the production of finished EVs, as well as the repurposing and recycling of EV batteries,” said Toshihiro Mibe, Director, President and Representative Executive Officer of Honda.

“We are very pleased to establish a new company with MC, which has deep knowledge of electric power business and shares our aspiration to realize a decarbonized society. Starting with N-VAN e:, we will take a proactive approach to establish a sustainable business foundation not only for the sales of EVs as mobility products, but also to create an optimal EV business environment including full utilization of batteries, which we believe will be critical for the popularization of EVs.”

“We are pleased to be working with Honda, which boasts outstanding technological capabilities and is committed to the realization of resource circulation. With its business model to integrate mobility, energy, services and data, our new joint venture will take on challenges to introduce a new scheme that separates the ownership of the vehicle and battery of a single EV unit. Working toward the realization of a carbon-neutral society through societal implementation of EVs, we will leverage MC’s broad range of industrial contacts and business expertise and continue to work on the establishment of cross-industrial business models,” said Katsuya Nakanishi, Representative Director, President and CEO of Mitsubishi.

ALTNA will be run by Seiichi Fukui from Mitsubishi as CEO.

www.honda.com

 

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