Kickstart: Vertical integration for EV growth

Honda is embracing vertical integration as a strategy for electric vehicle success.

The Japan-based automaker already stands out by retaining some in-house injection molding for key parts such as instrument panels and bumper fascia.

Earlier this month, Honda CEO Toshihiro Mibe said Honda will use vertical integration to better control technical issues and costs, our sister paper Automotive News reports.

"We changed our strategy a little bit in terms of electrification, especially batteries," Mibe said during a quarterly financial report. "We are shifting to a vertical-type system to sustain a total electrification business. To do that, we must internalize these technologies."

One $11 billion example of that plan is its investment in Alliston, Ontario, to build "a comprehensive EV value chain … from the procurement of raw materials mainly for batteries, to the production of finished EVs."

Plastics News' Frank Esposito wrote in April about Asahi Kasei Corp.'s part in that Ontario project: a $1.1 billion factory to make films and coating for its Hipore-brand wet process battery separator used in EV battery packs. It was singled out by Honda as a partner in the project.

Vertical integration isn't new to the auto industry — Henry Ford produced its own timber and rubber for parts early in its corporate history — but most automakers abandoned it starting in the 1990s as they simplified and spun off major parts production operations.

It remains to be seen if Honda's vertical integration for EVs will generate interest from its competitors.

It's time to get social.

Later this month, Plastics News will run its annual guide to the most interesting social media accounts to follow in the plastics industry. These aren't necessarily official corporate accounts or feeds from industry groups, but rather individuals and groups who comment on topics of interest to the plastics industry. That could mean discussing new technology, public policy, workforce and sustainability.

While PN staffers are familiar with a lot of accounts, we know we don't see everything out there. Please nominate an account you think we should check out. Nominate your favorite accounts by May 18 at www.plasticsnews.com/social.

You can find some of our past coverage here.

Coca-Cola Co. gets plenty of attention related to plastic bottle recycling. The soft drink giant and its bottlers, however, also have also been recycling plastic barrels that previously held concentrated soft drink syrup.

Coke's 55-gallon plastic drums are donated to local municipalities and environmental groups to convert into residential rain barrels. At least 40 different communities have offered Coke rain barrels during the past 10 years or so, encouraging residents to grab one that can collect water for their gardens while also reducing the potential for basement flooding due to saturated soil near houses.

The city of Evansville, Ind., noted that during summer months lawn and garden watering can use up to half of the community's water use. The city also provides a guide on how to paint your barrel to make it your own.