Honda and Princeton NuEnergy Sign MOU to Advance Collaboration in Next-Generation Battery Recycling Technologies

Rhea-AI Summary

Honda (NYSE:HMC) and Princeton NuEnergy (PNE) signed a memorandum of understanding on January 5, 2026 to advance collaboration on next-generation lithium-ion battery recycling technologies.

The MOU builds on joint technical validation since 2022 of PNE's plasma-based Direct Recycling and Upcycling processes, which produced rejuvenated NMC cathode active material with performance comparable to virgin material. The agreement frames collaborative validation projects and potential future commercial-scale applications to strengthen circular supply chains and U.S. energy independence.

News Market Reaction

+0.33%

1 alert

+0.33% News Effect

On the day this news was published, HMC gained 0.33%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Collaboration start: 2022 Award year: 2025 Current price: $29.96 +3 more

6 metrics

Collaboration start 2022 Start of joint technical validation between Honda and PNE

Award year 2025 "2025 Smart Move SC New Plant Award" for PNE expansion

Current price $29.96 Pre-news price for HMC on publication date

52-week high $34.89 Pre-news 52-week high for HMC

52-week low $24.56 Pre-news 52-week low for HMC

Market cap $38,250,790,842 Pre-news market capitalization for HMC

Market Reality Check

Price: $31.78 Vol: Volume 1,636,518 vs 20-da...

high vol

$31.78 Last Close

Volume Volume 1,636,518 vs 20-day average 1,049,176 (relative volume 1.56x). high

Technical Price 29.96 is trading below the 200-day MA at 30.66 and 14.13% under the 52-week high.

Peers on Argus

HMC gained 1.63% with elevated volume, while key peers were mixed: F +1.21%, STL...

HMC gained 1.63% with elevated volume, while key peers were mixed: F +1.21%, STLA +1.06%, RACE +0.22%, versus GM -0.53% and LI -0.46%, indicating a more company-specific backdrop for this battery-recycling MOU.

Historical Context

1 past event · Latest: Aug 06 (Positive)

Pattern 1 events

Date	Event	Sentiment	Move	Catalyst
Aug 06	Earnings results	Positive	+2.4%	Strong Q1 FY2025 earnings and raised FY2026 profit guidance supported by robust demand.

Pattern Detected

Limited history: the last recorded news (earnings and guidance raise) saw a positive price reaction, aligning with constructive fundamentals-focused announcements.

Recent Company History

Over the past six months, Honda’s disclosed news flow has included strong financial performance and governance updates. On Aug 06, 2025, HMC reported Q1 FY2025 results with operating profit of 244.1 billion yen and raised its FY2026 operating profit forecast to 700 billion yen, with a 2.4% positive price reaction. Subsequent filings detailed governance structures and a multi-tranche U.S. dollar senior notes offering. Today’s MOU with Princeton NuEnergy fits into Honda’s broader electrification and capital investment trajectory.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-06-20

Honda has an effective F-3ASR shelf registration dated 2025-06-20, which has already been used via at least 2 prospectus supplements (424B2 and 424B5) in late June 2025 for debt offerings. This framework enables relatively quick access to capital for initiatives such as electrification and related investments.

Market Pulse Summary

This announcement underscores Honda’s push toward electrification and resource circularity, building...

Analysis

This announcement underscores Honda’s push toward electrification and resource circularity, building on joint technical validation with Princeton NuEnergy since 2022. The MOU frames potential commercial-scale use of plasma-based direct recycling to rejuvenate NMC cathode materials, complementing Honda’s prior financing activities and governance focus. Investors may watch for future updates on concrete project scopes, capex tied to recycling deployment, and how these initiatives integrate with broader EV and energy-security strategies.

Key Terms

lithium-ion battery, cathode active material, circular battery materials supply chain, critical minerals

4 terms

lithium-ion battery technical

"next-generation lithium-ion battery recycling technologies."

A lithium-ion battery is a rechargeable energy cell that stores and releases power by moving lithium ions between two electrodes, like a pump moving water back and forth to hold and deliver energy. Investors care because these batteries power electric vehicles, portable electronics and grid storage, so factors such as cost, energy density, lifespan, and raw-material supply directly affect manufacturing costs, product competitiveness and long-term company profits.

cathode active material technical

"PNE has produced rejuvenated NMC cathode active material with performance characteristics"

Cathode active material is the chemical substance inside a rechargeable battery's positive electrode that stores and releases electrical energy by accepting and releasing ions during charge and discharge. It determines key battery traits — how much energy the cell holds, how fast it can charge, how long it lasts and how safe it is — so changes in its chemistry, cost or supply can materially affect manufacturers' performance, product pricing and investment risk.

circular battery materials supply chain technical

"intention to strengthen the circular battery materials supply chain and U.S energy independence"

A circular battery materials supply chain is a system that keeps battery components — like lithium, cobalt, nickel and graphite — in use by recovering, repairing and recycling them instead of disposing and constantly mining new raw materials. For investors, it matters because it can lower long‑term input costs, reduce exposure to raw material shortages and price swings, and improve a company’s regulatory and environmental profile, potentially affecting profitability and risk.

critical minerals technical

"supporting U.S. critical minerals and energy-security objectives."

Materials needed to build modern technologies—like batteries, electronics, renewable energy systems and defense equipment—that have few easy substitutes and often come from a small number of countries or mines. Investors care because their supply can be disrupted, expensive or slow to increase, which affects the cost, availability and growth prospects of companies and industries that rely on them; think of them as critical spare parts for the global economy.

AI-generated analysis. Not financial advice.

PRINCETON, N.J., Jan. 5, 2026 /PRNewswire/ -- Honda Motor Co., Ltd. ("Honda") and Princeton NuEnergy Inc. ("PNE") today announced the signing of a memorandum of understanding (MOU) to advance discussion on collaboration around next-generation lithium-ion battery recycling technologies. The agreement reflects the companies' shared intention to strengthen the circular battery materials supply chain and U.S energy independence through innovative recycling and rejuvenation pathways.

Since 2022, Honda and PNE have conducted joint technical validation of PNE's plasma-based Direct Recycling and Upcycling technologies for lithium-ion battery manufacturing scrap and end-of-life materials. Through this work, PNE has produced rejuvenated NMC cathode active material with performance characteristics comparable to virgin material, supporting Honda's long-term goals for resource circularity and electrification.

The MOU outlines a framework for a strategic partnership focused on collaborative validation projects and the potential for future commercial-scale applications. It reflects alignment between Honda's global electrification strategy and PNE's mission to expand cost-efficient production of battery-grade cathode active materials through a closed-loop platform.

Dr. Chao Yan, Co-Founder and CEO of Princeton NuEnergy, said: "Our work with Honda shows strong technical alignment and a clear pathway for advancing circular battery materials. This MOU reflects a shared commitment to accelerating the next phase of sustainable, high-performance material production, and we look forward to continuing our collaboration."

Honda Motor Co., Ltd.: "Honda values the progress achieved through our collaboration with PNE and recognizes the importance of advanced recycling technologies in building a more sustainable materials ecosystem. This MOU represents an important step forward in our efforts to advance long-term solutions that support our global electrification strategy."

This announcement follows the recent recognition of PNE's U.S. manufacturing expansion, including the "2025 Smart Move SC New Plant Award," which highlights the company's progress in strengthening domestic production of advanced battery materials while supporting U.S. critical minerals and energy-security objectives.

PNE's continued growth, combined with the expanded collaboration with Honda, puts the company in a great position to build a modern, circular, and domestic supply chain for lithium-ion battery materials that supports long-term industry resilience.

About Princeton NuEnergy, Inc.
PNE is an advanced materials manufacturer and the most cost-effective, energy- and capital-efficient U.S. producer of battery-grade cathode active material (CAM) for lithium-ion batteries. Built on a proprietary, closed-loop platform, PNE's high-performing technology spans multiple high-growth materials businesses, including Direct Recycling (Cathode-to-Cathode®), Advanced Black Mass™ production, and Upcycled CAM — strengthening the domestic battery supply chain and supporting U.S. energy independence and national security priorities.

About Honda Motor Co., Ltd. (NYSE: HMC)
Honda, driven by dreams, is a comprehensive mobility company that provides a wide range of mobility products including motorcycles, automobiles, and power products. In order to offer the "joy and freedom of mobility" through mobility to people around the world in a sustainable manner, Honda has set two 2050 targets: 1) to realize carbon neutrality for all products and corporate activities Honda is involved in and 2) to achieve zero fatalities worldwide from traffic collisions involving Honda motorcycles and automobiles. Honda will strive to offer the "joy and freedom of mobility" in a sustainable manner by fully demonstrating its original ideas and technologies, and working together with many companies and organizations, transcending the boundaries of individual companies and industries.

Media Contact:
Arsalan Khan
Marketing Manager
Princeton NuEnergy
arsalan_khan@pnecycle.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/honda-and-princeton-nuenergy-sign-mou-to-advance-collaboration-in-next-generation-battery-recycling-technologies-302652247.html

SOURCE Princeton NuEnergy

FAQ

What did Honda (HMC) and Princeton NuEnergy announce on January 5, 2026?

They announced an MOU to advance collaboration on next-generation lithium-ion battery recycling and potential commercial-scale validation projects.

How long have Honda and PNE been working together on recycling validation for HMC?

They have conducted joint technical validation since 2022 using PNE's plasma-based Direct Recycling and Upcycling technologies.

What performance did Princeton NuEnergy's rejuvenated NMC cathode material demonstrate for HMC?

PNE produced rejuvenated NMC cathode active material with performance characteristics comparable to virgin material, per the announcement.

Does the MOU between Honda (HMC) and PNE commit to immediate commercial production?

No; the MOU outlines a framework for collaborative validation projects and the potential for future commercial-scale applications, not an immediate commercial commitment.

What strategic goals does the Honda-PNE MOU aim to support for HMC?

The MOU aims to strengthen circular battery materials supply chains and support U.S. energy independence while aligning with Honda's global electrification strategy.