Honda to spend $64 billion on R&D over next decade

Honda Motor prepares to spend $64 billion on research and development during the next decade, the automaker said on Tuesday, laying out an ambitious target to roll out 30 electric vehicle models globally by 2030.

Its goals include producing about 2 million electric vehicles annually by 2030, intending to gain a share in the fast-growing market for electric vehicles, led by Tesla Inc, while Japanese automakers risk falling behind European and U.S. competitors.

“As far as resource investments over the next 10 years go, we’re going to invest about 8 trillion yen in research and development expenses,” said Honda CEO Toshihiro Mibe, referring to the equivalent of $64 billion.

Honda said it wanted to form a dedicated electric vehicle production line in North America, where it is also set to procure Ultium batteries from General Motors Co (GM.N).

It is also thinking about a separate joint venture company for battery production in the continent, apart from its GM partnership.