Honda Makes Surprise Bet on Solid-State Batteries With New Research Deal

• Honda Makes Surprise Bet on Solid-State Batteries With New Research Deal
• Why solid-state?
• Honda's wider electrification picture

Honda R&D, the independent research and development arm of Honda Motor Company, has signed a multi-year joint research agreement with California-based battery technology company QuantumScape. The deal, announced on Thursday, is focused on developing and manufacturing solid-state battery cells. 

The agreement follows Honda's review of QuantumScape's technology, providing an important vote of confidence in the company's solid-state battery efforts.

Why solid-state?

Solid-state batteries are often viewed as one of the most promising advances in next-generation energy storage. They could allow electric vehicles to travel farther, charge more quickly and operate more safely than those using today's lithium-ion batteries. The potential uses go beyond electric vehicles. The technology could also help power AI data centers, aircraft and defense systems.

Not every solid-state battery claim has gone unchallenged. Earlier this year, Finnish startup Donut Lab attracted attention after announcing what it described as the world's first production-ready solid-state battery. More recently, battery researcher Ryan Inis Hughes, who publishes on YouTube as Ziroth, questioned that claim, arguing that the cell appears to rely on conventional lithium-ion chemistry rather than the sodium-ion solid-state design the company implied.

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QuantumScape kicked off pilot production of its 5-amp-hour QSE-5 solid-state cell earlier this year at its San Jose, California, headquarters.

Antuan Goodwin/CNET

QuantumScape, by contrast, appears to have stronger validation for its technology. An existing deal licensing its technology to PowerCo SE, the battery company of the Volkswagen Group, gave the company its first major automotive alignment. Honda's more recent evaluation and research agreement reinforces the appearance that its technology is holding up under serious scrutiny.

"QS technology demonstrated compelling and unique advantages during our evaluation," Atsushi Ogawa, chief operating officer of Honda R&D, said in a statement accompanying the announcement. "We see potential for QS technology to add value across a range of applications, including automotive, and we are excited to move forward into the next phase of our partnership."

The deal is a meaningful step toward solid-state battery tech reaching consumer cars. Earlier this year, QuantumScape opened its Eagle Line pilot facility at its Silicon Valley headquarters. The facility will produce QSE-5 solid-state battery samples for partner evaluations and serve as a blueprint for large-scale manufacturing before customers such as Honda commit to licensing the technology.

Honda's wider electrification picture

The agreement comes at an unexpected moment. Earlier this year, Honda pulled back on several high-profile North American EV initiatives, including the Zero Saloon and SUV concepts, the Acura RSX SUV, and its Afeela collaboration with Sony Honda Mobility.

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Earlier this year, Honda took a huge loss and ended development of the upcoming 0 EV concepts and Acura RSX due to insufficient demand.

Honda

Honda has reduced its near-term EV ambitions, cutting EV and software investment and lowering its 2030 global battery-electric sales target to about 20%. The company is now prioritizing hybrids, with a new wave of models planned from 2027, rather than pursuing an all-electric and fuel-cell lineup by 2040.

A representative for Honda didn't immediately respond to a request for comment.

Antuan started out in the automotive industry the old-fashioned way, by turning wrenches in a driveway and picking up speeding tickets. He now has nearly 20 years of expertise and experience behind the wheel of hundreds of cars, including electric, hybrid, plug-in hybrid, hydrogen, and traditional combustion vehicles. For each car he tests, Antuan covers more than 200 miles behind the wheel and evaluates driving dynamics; acceleration and braking performance; range; and efficiency. Antuan's goal is to use his extensive car knowledge to educate CNET readers and help with their next car-related buying decision. Whether you're EV-curious, an EV-enthusiast or a combustion-car loyalist, Antuan will bring you the unbiased advice, reviews, best lists and news you need. You can reach Antuan at [email protected]