Honda Motor Co., Ltd. and Mitsubishi Corporation have announced plans to establish a new 50/50 joint venture (JV) company, ALTNA Co., Ltd. (ALTNA). Accordingly, the new JV, which will materialize in July, is an offshoot of the two companies’ agreement signed in October 2023.

Since then, the two companies have been in talks about the new businesses amid the growth of the electric vehicle (EV) market. For that reason, the two companies decided to establish a joint venture company and work together to address challenges. Moreover, both are looking forward to the societal implementation of EVs and the realization of decarbonized society such as the following:

1) Optimization of the EV usage cost;

2) Enhancement of the lifetime value of batteries, which contain various limited resources, and improvement of resource circulation within Japan; and

3) Accommodation of the increasing demand for adjustment capacities through grid storage batteries. Particularly, toward an increase in the proportion of renewable energy in the energy mix in Japan.

By combining Honda control and connected technologies for EVs and batteries and MC power-generation know-how, which extends to the administration of storage-battery systems and smart-charging operations, ALTNA will strive to offer new mobility services that reduce the total cost of ownership for EV users and create new power-supply operations that enable long-term utilization of EV batteries.

Role of the New Company

Battery Leasing Business

In collaboration with affiliated leasing companies of Honda and MC, ALTNA will begin sales of lease plans, starting with the Honda N-VAN e. Specifically, this is a new commercial-use mini-EVs Honda is planning to launch in October 2024. This means a leased vehicle to its customer, ALTNA will still retain ownership of the battery and monitor battery usage during the lease period.

Continuous monitoring of the battery conditions, including predictions of future battery deterioration, will enhance the reliability of the battery. Especially those measured by various parameters, including the battery state of health (SOH)*1.

Based on such high reliability of batteries, ALTNA will conduct business that utilizes batteries for a long time. Alternatively, 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 utilized for ALTNA’s grid storage battery business. Thus, ALTNA will set leasing prices based on the assumption that batteries will be utilized for a long period of time. This is from on-vehicle to stationary applications, which will contribute to a reduction of the financial burden on EV users.

EV lease plans with affiliates of Honda, MC

1) N-VAN e: Value Plan

A closed-end*2 lease ALTNA will offer to Honda EV users in collaboration with Honda and Honda affiliate companies. On the assumption EV batteries will be for repurpose, ALTNA will offer this plan at prices lower than those of similar lease plans currently available in the market.

Thus, this lease plan will be available exclusively through the Honda online new vehicle store, Honda ON (https://on.honda.co.jp/), from October 10, 2024, simultaneously with the market launch of the N-VAN e: in Japan.

2) N-VAN e: Circular Lease Plan

This is a highly economical, closed-end*1 plan that is currently being discussed in collaboration with Mitsubishi Auto Leasing Corporation (MALC). By taking advantage of MALC’s proprietary EV consultation program “EV4CHANGE,” this plan will offer corporate users end-to-end customer support to address challenges associated with the introduction of EVs, from establishing fleet electrification plans to setting up charging infrastructure and optimizing vehicle use.   

Battery Repurposing Business

ALTNA will also conduct an electric power business to repurpose end-of-life EV batteries and manage as grid storage batteries. Therefore, this will provide the supply-demand adjustment capacities to enable greater grid stability and also contribute to widespread utilization of renewable energy.

Through its battery leasing business, ALTNA will continuously monitor the use conditions of EV batteries. Thereafter, 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.

Smart Charging*3 Business

Furthermore, ALTNA will offer EV charging plans that optimize electricity costs for EV users. Specifically, 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 customers’ 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. In addition, ALTNA’s charging plans will contribute to the increased use of green (renewable) energy by charging EVs during times when there is a surplus of renewable energy on the power grid.

Moreover, ALTNA will proceed with consideration toward offering V2G*4 services with an eye toward the opening up of the electricity market in the future.

Notes:

*1 SOH (state of health): One of the parameters that indicate the state of battery deterioration.

*2 Closed-end lease: A type of lease contract in which the leasing company guarantees the residual value at the end of the lease term.

*3 Smart charging system automatically adjusts the timing of EV charging according to electricity supply and demand.

*4 V2G (Vehicle to Grid): Technology to charge EVs with electricity from the grid as well as to supply electricity stored in EVs to the grid.

20 June 2024