Honda plans to invest $40 billion on EVs and launch 30 models by 2030

It previously pledged to phase out gas-powered cars by 2040.

BEHROUZ MEHRI via Getty Images

Last year, Honda revealed that it intends to shift all its car sales to electric and fuel cell vehicles by 2040. To make phasing out gas-powered cars feasible, it has to release a wide selection of zero-emission vehicles that customers can choose from. Now, the automaker has announced that it's spending 5 trillion yen or around $40 billion on its electrification efforts over the next 10 years.

In a live briefing, the company also said that it plans to launch 30 EV models by 2030 with a production volume of 2 million vehicles a year. The aim is for electric vehicles to make up 40 percent of its fleet by the end of the decade,

As TechCrunch reports, Honda plans to get the ball rolling in Japan by introducing an ultra-cheap mini EV model that costs around $8,000 by 2024. It will also release the Prologue and Acura electric vehicles, both being co-developed with GM, in North America in the same year. In early April, Honda and GM announced that they're working together to co-develop a series of affordable EVs based on a global architecture and GM's Ultium battery technology.

Honda has plans that don't involve GM, however, and is using part of its $40 billion budget to develop its own electrification platform. It's also exploring the possibility of teaming up with other companies for battery production. In addition, it's investing 43 billion yen ($343 million) into building a demonstration line for solid-state batteries by 2024.

Honda CEO Toshihiro Mibe has also reiterated that a big part of its electrification efforts is making sure it has a solid presence in China, which is currently the world's biggest EV market. Like the company announced in the past, Mibe said Honda will launch 10 new models in China under its e:N Series branding by 2027. The company will also build plants in Guagzhou and Wuhan to manufacture its electric vehicles for the country.