Honda Motor Co. said Friday it has formed a capital tie-up with Chinese automobile battery maker Contemporary Amperex Technology Co. to jointly develop batteries for electric vehicles.

The Japanese automaker said in a statement it has acquired about a 1 percent stake in the Chinese company for an undisclosed amount as part of efforts to strengthen their partnership and boost competitiveness in the development of EVs.

The two companies plan to introduce their first electric vehicle models equipped with CATL batteries in the Chinese market as early as 2022 and expand their products to other markets in the future.

It is the first time Honda has invested in a Chinese battery maker, according to a Honda spokesman.

Toyota Motor Corp. has tied up with CATL over development and supply of batteries.

==Kyodo

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