What's going on?

Japan�s Sony and Honda announced on Friday that they�re partnering up to make electric vehicles (EVs) � and not a moment too soon.

What does this mean?

Sony announced plans to push into the EV space back in January, and now it�s found the perfect partner to work with: Honda,�the first Japanese carmaker to pledge to phase out traditional cars completely by 2040. The pair have a lot to teach each other: Honda has decades of experience in making and selling vehicles, while Sony�s a global leader in producing entertainment systems and sensors for self-driving cars. Better yet, the PlayStation-maker has been collaborating with TSMC to build a new chipmaking plant in Japan, which suggests sourcing parts for the chip-heavy machines won�t be an issue.

Why should I care?

The bigger picture: Better late than never.
You won�t be able to get your hands on one of these electric masterpieces for a while, mind you: they won�t be hitting car lots till 2025. Honda and Sony will no doubt be itching to join the party by then, given that this year alone could see a rush for EVs as prices at the gas pump continue�to rise. The oil price hit an eight-year high of $111 last week, after all, and JPMorgan reckons it could hit $185 a barrel by the end of the year if Russian supply disruptions continue.

Zooming out: Sustainable debt.
EVs aren�t cheap to develop, which might be why Honda announced on Friday that it sold $2.8 billion worth of green bonds � those used to fund environmental initiatives � to help finance the push (tweet this). It�s not the only one: Ford issued a record $2.5 billion worth of green bonds in November, in hopes of funding its own electrically powered expansion. In fact, sales of green bonds hit a record $513 billion last year, and analysts are expecting that figure to hit as much as $1 trillion in 2022.