Resource Circulation

Environmental Impact of Mining Scarce Resources Associated with Product Electrification

Electrification of products is an effective means of reducing CO2 emissions during product use. However, compared to traditional internal combustion engine vehicles, electric vehicles use larger amounts of scarce resources such as copper, nickel, cobalt, lithium, and rare earth elements. The extraction of scarce resources involves substantial energy consumption and significant CO2 emissions. Therefore, it is crucial to focus on efficient resource use (referred to as resource circulation) that enables low-energy and sustainable recycling.
In a traditional linear business model based on production and disposal, the recycling process is not included in the supply chain. We are working to go beyond the conventional business model and achieve resource circulation by collaborating with relevant industries. Alongside our efforts towards carbon neutrality, we are addressing societal challenges related to resource utilization while striving to continuously provide the “joy and freedom of mobility” through our mobility solutions.

Achieving Horizontal Recycling by Maximizing the Use of End-of-Life Products

Honda aims to achieve resource circulation through horizontal recycling*, which maximizes the use of End-of-Life Vehicles (ELVs). This approach requires the development of a new “circular value chain.” To build this value chain, Honda is working to acquire capabilities beyond its current corporate activities. The insights and technologies gained from this effort are expected to support new businesses and products designed with a circular economy in mind, as well as the innovative technologies to achieve them. Consequently, we are focusing on transforming our business from a mass consumption model to a circular one.

* Horizontal recycling: Recycling used products back into resources and using them again for the same purpose.

Creating Economic Viability in Resource Circulation

To fully utilize the value of products and components, we will focus on reusing and repurposing them. We will also utilize data to “visualize value” throughout the product lifecycle, facilitating regulatory compliance, proper transactions of products and components, and promoting their effective use. To efficiently recycle used products, it is crucial to incorporate “circular-oriented materials and design” into the products. For the products currently under development, we are advancing the replacement of materials with those designed for circularity, integrating material types, and adapting material specifications and manufacturing methods to accommodate the use of recycled materials. Additionally, we are working on designs that facilitate easy disassembly of ELVs and transforming components made of multiple materials into structures that allow for easy separation into single materials, avoiding the inclusion of contaminants during the recycling process.

Path to Business Transformation Considering the Product Lifecycle

Honda has set “efficient utilization of resources” as a materiality and aims to achieve “100% sustainable material usage” by 2050.
Honda is addressing the realization of product resource circulation by dividing the period up to 2050 into two major phases. Specifically, until the early 2030s we will be focused on acquisition of pioneering capabilities” and “preparation of circular business models, products, and innovative technologies.” Meanwhile, the latter phase from late 2030s is anticipated to be the period when the effects of these preparations begin to manifest with a focus on “business transformation effects and the implementation of innovative technologies.”