Honda and Mitsubishi plan new business for EV recycling and grid support

Tokyo motor majors Honda and Mitsubishi have announced plans to establish a new company, ALTNA Corporation, to create new businesses encompassing the full value chain of EVs, from battery recycling to their role as a power grid asset.

The new corporation, based on a memorandum of understanding signed by Honda and Mitsubishi in October 2023, will launch in July this year and expand the role of EVs and their batteries in the future energy system, including their use as sources of grid storage to provide balancing power.

Through the collaboration, Honda’s EV and battery control and connected technologies will be combined with Mitsubishi Corporation’s knowledge of the electricity business, such as battery storage operation and smart charging.

Combining these two focus areas, ALTNA aims to develop new mobility services that reduce EV users’ Total Cost of Ownership (TCO) and a new electricity business that makes long-term use of EV batteries.

Commenting in a Honda-issued release, Toshihiro Mibe, president and CEO of Honda Motor, said: “With an eye toward the future widespread use of EVs, Honda is working to build a vertically integrated EV value chain, covering everything from raw materials procurement to finished vehicle production, secondary battery use and recycling.

“Starting with the N-VAN e:, we will not only promote EVs as a standalone form of mobility, but also promote the creation of an environment that includes the utilisation of batteries, which will be important in the widespread use of EVs, and will actively work to build a sustainable business foundation.”

ALTNA Corporation will have three particular business segments: a battery leasing business, a repurposed energy storage business and a smart charging business.

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Battery leasing

Starting with the N-VAN e:, a new light commercial EV that Honda plans to release in October 2024, the two companies will begin selling new leasing products in collaboration with their affiliated leasing companies.

When leasing a vehicle to a customer, ALTNA will retain ownership of the battery and will monitor battery usage during the lease period. Continuous monitoring, including prediction of future battery deterioration, will increase the reliability of the battery, including its state of health, and will develop a lifecycle business that utilises batteries for the long term, from new cars to used cars.

After the in-vehicle usage period ends, the batteries will be collected and converted into a grid storage battery business (repurposed energy storage business).

Repurposed energy storage

ALTNA will develop an electric power business that reuses batteries that have been disposed of as in-vehicle storage batteries and operates them.

The company will provide the power adjustment capability to stabilise the power supply and contribute to the spread of renewable energy. Additionally, they state, they will continuously monitor the battery status from the time of in-vehicle use and maximize the use of collected batteries based on the obtained data, leading to long-term and stable operation.

Batteries that have been disposed of as in-vehicle storage batteries will be appropriately recycled to realise circular manufacturing.

Smart charging

By utilising advanced energy control technology, ALTNA states they will provide EV charging plans that optimise the electricity costs for EV users by avoiding times when the power grid is tight.

The energy control system will be linked with the vehicle so that charging is automatically performed at times when electricity procurement costs are the lowest according to the car’s usage schedule, which contributes to reducing the cost of EV usage without the customer having to consider charging times themselves.

In addition, charging during times when there is a surplus of renewable energy on the power grid also contributes to greening.

ALTNA is also considering providing V2G services in anticipation of future market liberalisation.

Said Katsuya Nakanishi, president and CEO of Mitsubishi Corporation: “We are pleased to be working with Honda, which boasts excellent technological capabilities and aims to realise resource circulation.

“This is a business model that combines mobility, energy and service data and is an effort to challenge the introduction of a new scheme called vehicle-electricity separation, which separates the ownership of the vehicle body and the battery within the same EV.

“Toward the realisation of a carbon-neutral society through the social implementation of EVs, we will continue to utilise our industrial contact points and business knowledge to work on building cross-industry business models.”

Commented Seiichi Fukui, president and tentative CEO of ALTNA Corporation: “We established ALTNA with the mission of creating solutions that maximise the lifetime value of limited resources and the efficiency of renewable energy utilisation in order to achieve intergenerational coexistence with the global environment.

“Together with various partners, we will provide alternative options for a new future.”