By: Asia Business Outlook Team | Monday, 20 November 2023
On Nov 20, Japanese battery manufacturer GS Yuasa announced plans to raise up to 47.2 billion yen ($315.47 million) through the sale of new shares and third-party allotment to Honda Motor. GS Yuasa has announced that it plans to allocate the funds towards capital expenditure for a new plant dedicated to producing lithium-ion batteries for electric vehicles.
Honda announced that it was taking part in the share sale as a component of its plan to bolster its electrification business. According to the carmaker, Honda will have a 4.99 percent ownership in GS Yuasa following the transaction. Following LSEG data, it owns 3% of GS Yuasa, putting it in third place in terms of ownership of the battery company.
The GS Yuasa Corporation is a Japanese company located in Kyoto, focused on the design and manufacture of lead-acid and lithium-ion batteries. These batteries are utilized in a variety of applications, such as automotive, motorcycle, aerospace, and defense industries. During the late 2000s to early 2010s, it was a key player in the electric vehicle battery industry as multiple battery vendors from Japan formed partnerships with car manufacturers to break into the emerging EV market. In 2007, an alliance was formed between GS Yuasa and Mitsubishi Motors, resulting in the creation of a joint venture called Lithium Energy Japan (LEJ). This partnership focuses on the development and production of lithium-ion batteries for both automotive and industrial applications.