November 29, 2023: Lead and lithium battery giant GS Yuasa said on November 20 it planned to raise up to ¥47.2 billion ($320 million) in a sale of new shares and third-party allotment to Honda Motor.

Yuasa said the cash raise would fund capital expenditure planned across its battery manufacturing including a new EV lithium batteries plant.

According to Honda, its stake in Yuasa will increase to nearly 5% following the transaction.

The companies signed a 50-50 joint venture agreement in May to form a lithium battery R&D business.

That deal came just weeks after Japan’s government backed plans by the partners to invest ¥444 billion ($3.3 billion) in a battery manufacturing plant for EVs and residential energy storage systems.

Batteries International reported in August that Yuasa was selling controlling stakes in two of its China-based lead battery firms to Leoch in a deal worth up to Rmb280 million ($39 million).

Leoch signed an agreement to acquire a 70% stake in Tianjin GS Battery and Yuasa Battery Shunde.