February 2, 2023

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Mazda unveils $11 billion EV spending plan and considers investment in Reuters battery production

©Reuters. FILE PHOTO: Mazda’s logo is pictured at the LA Auto Show in Los Angeles, California, U.S. on November 20, 2019. REUTERS/Andrew Cullen

TOKYO (Reuters) – Japan’s Mazda Motor (OTC:) Corp unveiled a $10.6 billion spending plan on Tuesday.

The company also increased its electric vehicle (EV) sales target to up to 40% of its total global sales by 2030 as automakers spend billions of dollars worldwide to ramp up battery and EV production in the face of tighter environmental regulations.

Mazda’s investment plan this year follows similar announcements by domestic competitors like Toyota and Honda, which have been criticized by environmentalists and green activist investors for being slow on electrification.

“We will drive full-fledged adoption of battery EVs and consider investing in battery production. We estimate that Mazda’s EV share of global sales will increase to a range between 25% and 40% by 2030,” Mazda said in a statement.

The previous sales target for electric vehicles was 25% by 2030.

Chief executive Akira Koga told reporters that the 1.5 trillion yen ($10.6 billion) investment would be made along with its partners and used for research and development. The news was first reported by the business newspaper.

Koga declined to give a detailed investment timeline, adding that it depends on how quickly electric vehicles become popular.

The automaker said it has agreed to work with seven companies, including electric component maker Rohm Co, to jointly develop and produce electric drive units.

Mazda CEO Akira Marumoto told reporters the company has reached a supply agreement with battery maker Envision AESC for its Japanese-made electric vehicles.

Envision AESC chief Shoichi Matsumoto told Reuters last month his company is in talks with automakers in Japan, Europe, the United States and China about new supply deals.

Mazda is targeting net sales of about 4.5 trillion yen for the fiscal year ended March 2026, up about 45% from the fiscal year ended March 2022, the company said.

($1 = 141.7500 yen)