In a stride towards sustainable energy solutions, Japanese automaker Honda {{ m-tag option="price" ticker="HMC" currency="USD" }} and trading powerhouse Mitsubishi Corp {{ m-tag option="price" ticker="MSBHF" currency="USD" }} have inked a pact, underlining their venture into novel business domains utilizing electric vehicle (EV) batteries. This alliance, unveiled Thursday morning, reflects a broader automotive industry trend. Global car manufacturers are guiding toward battery-driven electric vehicles, albeit grappling with environmental ramifications post-battery depletion.
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Honda's Visionary Stance:
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The narrative further unfolds with Honda's visionary stance, as articulated by its Chief Executive, Toshihiro Mibe
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"Honda will transcend beyond merely selling EVs, delving into proactive energy management where EV batteries morph into a pivotal energy source."

Under this memorandum of understanding, a glimpse into the future was provided where the duo envisages establishing a business focused on monitoring the usage of Honda's mini-EV model battery, transitioning the auto battery to stationary energy storage.

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As the chronicle progresses, 2024 is earmarked as a significant year, with Honda initiating sales of the EV model in Japan. The collaboration doesn't just halt here; it extends to exploring "smart charging" and the intriguing "Vehicle to Grid" system, whereby electricity stored in EVs is supplied back to the grid. This innovative approach, as projected, could translate to reduced electricity bills for consumers and optimized use of battery material, creating a win-win scenario.
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Utility Business Genesis:
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Segueing into the next phase of this venture, Honda and Mitsubishi are setting the stage to create a utility business by interfacing electric vehicles with the grid, utilizing them for electricity supply and storage. The dialogues are underway to concretize the joint venture in the forthcoming year, with an extended vision of foraying into broader energy management services and recycling rare metals from expended batteries. With its established foothold in renewable energy generation, Mitsubishi emerges as a formidable partner in this endeavor.

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Vehicle-to-Grid (V2G) Concept:
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The heart of this initiative beats with the Vehicle-to-Grid (V2G) concept, orchestrating a system where EVs replenish the grid during peak power demand times while recharging their batteries during lull periods. The blueprint also encompasses a robust plan for retrieving old EV batteries for ample power storage, a significant move considering the imminent release of Honda's new electric van, the N-VAN e:, in Japan next year.

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EVs: Linchpins in Grid Systems
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The broader perspective reveals electric vehicles as potential linchpins in grid systems increasingly reliant on volatile renewable power sources. A substantial storage capacity is deemed imperative to mitigate fluctuations. The narrative unfolds a promising chapter with the Japanese government's gaze fixed on EVs as a crucial element in the electricity infrastructure amidst a transitioning clean vehicle landscape.

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As the plot thickens, Honda and Mitsubishi are gearing up for the anticipated liberalization of the utility market in Japan come fiscal 2026. This pivotal change will empower EV owners to sell electricity to power suppliers, a lucrative proposition. The Vehicle-to-Grid reality paves the way for EV owners to monetize by dealing electricity to utilities, elevating consumer incentive to invest in EVs.

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Technical Insight: Battery Capacity
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The technical synopsis reveals that an EV typically houses a battery capacity ranging between 20-100 kilowatt-hours, illustrating that a fleet of 100 EVs can channel up to 500 kilowatt-hours of power within 30 minutes. This quantum of energy equates to the daily electricity consumption of approximately 40 Japanese households, signifying a notable stride towards addressing grid storage inadequacies, which currently pose a bottleneck in Japan, especially as power sourced from renewables escalates.

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Conclusion:

In conclusion, the Vehicle-to-Grid market is tipped to burgeon globally, with projections indicating an 8.7-fold growth spurt from 2021 to a staggering $15 billion come 2031. This illuminating venture between Honda and Mitsubishi is a leap toward green energy solutions and a substantial stride toward a sustainable and lucrative future in the energy sector.

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