Honda, GS Yuasa form hybrid battery partnership

Eventually lithium powered?

Honda and GS Yuasa will "establish a joint venture company which will manufacture, sell and conduct R&D for high-power lithium-ion batteries with a central focus on applications in hybrid electric vehicles," according to GreenCarCongress.

While Honda might be a laggard on plug-in vehicles, it has aggressively increased its efforts into hybrid vehicles.

Still, Honda continues to develop electric cars as well, as the Honda Clarity is powered by an electric drivetrain. Thus, it seems that Honda will be quite capable of adapting to the electric vehicle market when it matures into full scale mass production.

Yet, Honda's interim plans for fuel economy will not suffer if EV adoption is slow, unlike many other automakers. Since, you can make a lot more hybrids than EVs with the same supply of batteries, Honda could flood the market with cheap hybrids as the issues of electrification are worked through without hurting EV development.