Honda and Hanwa Combine to Buy Battery Metals

Hanwa has handled materials for rechargeable battery manufacturing since the 1990s. In addition to nickel and cobalt, Hanwa is also focusing on lithium by investing in the Bacanora Lithium.

Honda Motor Co. said in Japan yesterday that it has established a strategic partnership with Hanwa* Co., a Japanese trading company, to buy essential metals for batteries necessary for its electrified vehicles.

Through the Hanwa partnership, Honda said it will ensure stable procurement in the medium to long term, of essential metals necessary for batteries such as nickel, cobalt and lithium, with the mined resources secured by Hanwa. It’s the latest move in what has become and EV battery ‘Gold Rush’ albeit centered on nickel, cobalt, and lithium. It remains problematic that China is well entrenched in EV research and development, manufacturing and various processes needed to support EVs.

Honda also says it “will continue working with a wide range of suppliers to ensure stable supply of necessary resources, that will enable Honda to steadily execute its electrification strategy leading to the realization of Honda’s carbon neutrality goal.”

Honda previously said that  battery-electric vehicles (EVs) and fuel cell electric vehicles (FCVs) will represent 100% of its global vehicle sales by 2040. Honda is planning to launch 30 EV models globally by 2030 with production volume of more than 2 million units annually.

* Hanwa is active in Japanese sales and import/export businesses in steel products, steelmaking raw materials, construction materials, housing materials, non-ferrous metals, petroleum, chemicals, food products, lumber, cement, industrial machinery. Hanwa has been handling the raw materials essential for rechargeable battery manufacturing since the 1990s. In addition to nickel and cobalt, Hanwa is also focusing on lithium and investing in the Bacanora Lithium project. Hanwa has 5,123 employees as of March 31, 2022. Yoichi Nakagawa is president. Capital is  ¥45.65 billion.