Honda and MC to establish a new enterprise under the name ALTNA Co., Ltd.

Today, Honda Motor Co., Ltd. (Honda) and Mitsubishi Corporation (MC) unveiled their intention to form a new 50/50 joint venture (JV) named ALTNA Co., Ltd. (ALTNA) in July 2024. This joint venture arises from a memorandum of understanding (MoU) signed between the two firms in October 2023, aimed at initiating conversations regarding the development of fresh ventures in anticipation of the burgeoning electric vehicle (EV) market and the shift towards a decarbonized society in the future.

The decision to establish a collaborative entity was driven by the mutual goal of addressing challenges related to the integration of EVs into society and achieving decarbonization. These include:

Enhancing the efficiency of EV usage costs;
Maximizing the lifespan and value of batteries, which encompass a variety of finite resources, and promoting resource circulation within Japan; and
Meeting the increasing need for balancing capacities through grid storage batteries to accommodate the rise in renewable energy consumption in Japan.

By amalgamating Honda’s expertise in control and connectivity technologies for EVs and batteries with MC’s proficiency in power generation spanning storage-battery system management and smart-charging operations, ALTNA aims to introduce innovative mobility services that reduce the overall ownership costs for EV users and establish new power-supply strategies that allow for prolonged battery utilization.

Operational Segments of the New Entity

1. Battery Leasing Operations

In partnership with affiliated leasing entities of Honda and MC, ALTNA will commence offering lease programs, starting with the Honda N-VAN e:, a new line of commercial mini-EVs slated for release in October 2024. Under these lease agreements, ALTNA will retain ownership of the batteries and oversee their usage throughout the lease term. Continuous monitoring of battery performance, including predictive assessments of future degradation, will enhance battery reliability assessed through various metrics like the state of health (SOH)*1. Holding the batteries to high reliability standards, ALTNA will engage in activities utilizing batteries over extended periods or their entire lifecycle, spanning from the initial vehicle purchase to ownership by subsequent users.

Post-automotive use, batteries will be reclaimed for utilization in ALTNA’s grid storage battery operations (battery repurposing enterprise). Pricing for the lease plans will be established based on the assumption of extended battery use, covering transitions from vehicular to stationary applications, thereby reducing the financial strain on EV consumers.

<EV leasing schemes anticipated from ALTNA in association with Honda and MC’s affiliated leasing bodies.>

1) N-VAN e: Value Plan

A closed-end*2 lease offering from ALTNA for Honda EV drivers in collaboration with Honda and its subsidiaries. By anticipating the future utilization of EV batteries in their storage battery business, ALTNA will introduce this plan at lower rates compared to existing market offerings. This lease is slated for exclusive availability through Honda’s online new vehicle outlet, Honda ON (https://on.honda.co.jp/), starting October 10, 2024, simultaneous with the N-VAN e: launch in the Japanese market.

2) N-VAN e: Circular Lease Plan

An economically feasible, closed-end*1 plan presently under discussion in partnership with Mitsubishi Auto Leasing Corporation (MALC). Leveraging MALC’s tailored EV consultation program “EV4CHANGE,” this initiative aims to provide comprehensive support to corporate clients throughout the EV introduction phase, from outlining fleet electrification programs to establishing charging infrastructure and streamlining vehicle utilization.

For additional details on the EV4CHANGE program, visit the following link.

URL：

2. Battery Repurposing Endeavors

ALTNA will also operate an electric power venture to repurpose retired EV batteries as grid storage batteries. This solution will enhance the grid’s stability by offering balancing capabilities and promote wider adoption of renewable energy sources. Through its battery leasing arm, ALTNA will continuously monitor EV battery conditions and repurpose end-of-life units based on long-term monitoring data. By efficiently utilizing such batteries, ALTNA aims to ensure sustained and reliable operation of its grid storage battery systems.

Furthermore, ALTNA commits to responsibly recycling end-of-life grid storage batteries to facilitate resource-focused manufacturing practices.

3. Intelligent Charging*3 Services

ALTNA will introduce EV charging programs that optimize electricity costs for EV users by leveraging cutting-edge energy management technologies to avoid peak-hour charging sessions. Through the interaction between its energy control platform and clients’ EVs, charging will be automatically scheduled during off-peak hours when electricity procurement costs are minimal based on each vehicle’s usage timetable. This eliminates the need for customers to manually identify the optimal charging times and contributes to reducing their overall EV-related expenses. Additionally, ALTNA’s charging initiatives will promote increased reliance on green (renewable) energy by aligning charging schedules with surplus renewable energy availability on the grid.

Furthermore, ALTNA will explore the provision of V2G*4 services with an eye towards future electricity market developments.

*1 SOH (state of health): One of the parameters reflecting battery degradation status.
*2 Closed-end lease: A leasing agreement where the company guarantees the residual value at the contract’s end.
*3 Smart charging system automatically adjusts EV charging timings based on energy supply and demand.
*4 V2G (Vehicle to Grid): Technology enabling EV charging from the grid and supplying stored electricity back to the grid.

Thoughts from Toshihiro Mibe, Director, President, and Representative Executive Officer of Honda:

“As we look ahead to the mainstream adoption of EVs, Honda is dedicated to forging a vertically-integrated EV value chain encompassing all facets of EV operations, from raw material procurement to final EV assembly, as well as the repurposing and recycling of EV batteries. We are delighted to join hands with MC, which possesses extensive expertise in electric power operations and shares our vision of fostering a decarbonized society. Starting with the N-VAN e:, we are committed to establishing a sustainable business model not solely for EV sales as transportation solutions but also for creating an optimal EV ecosystem, including maximizing battery utilization, a pivotal element in the acceptance of EVs.”

Insights from Katsuya Nakanishi, Representative Director, President, and CEO of MC

“We are thrilled to collaborate with Honda, renowned for its cutting-edge technology and dedication to resource circulation realization. Through our innovative business model integrating mobility, energy, services, and data, our new joint venture will embark on a journey to pioneer a fresh approach that segregates vehicle and battery ownership for individual EV units. As we strive towards achieving a carbon-neutral society through the societal integration of EVs, we will leverage MC’s extensive industrial network and business acumen to foster cross-sectoral business models.”

Comments from Seiichi Fukui, Representative Director, President, and CEO (designate) of ALTNA

“ALTNA is poised to launch with a vision to formulate solutions that optimize the enduring value of finite resources and the efficacy of renewable energy utilization to facilitate coexistence between mankind and the environment across generations. In collaboration with diverse allies, we aim to present alternative pathways towards a novel future.”