General Motors Co. (NYSE: GM) and Honda (NYSE: HMC) have announced an agreement for new advanced chemistry battery components, including the cell and module, to accelerate both companies’ plans for all-electric vehicles.
The next-generation battery will deliver higher energy density, smaller packaging and faster charging capabilities for both companies’ future products, mainly for the North American market.
Under the agreement, the companies will collaborate based on GM’s next generation battery system with the intent for Honda to source the battery modules from GM.
The collaboration will support each company’s respective and distinct vehicles. The combined scale and global manufacturing efficiencies will ultimately provide greater value to customers.
“This new, multi-year agreement with Honda further demonstrates General Motors’ capability to innovate toward a profitable electric portfolio,” said Mark Reuss, General Motors Executive Vice President of Global Product Development, Purchasing and Supply Chain.
“GM’s decades of electrification experience and strategic EV investments, alongside Honda’s commitment to advancing mobility, will result in better solutions for our customers and progress on our zero emissions vision.”
GM and Honda already have a proven relationship around electrification, having formed the industry’s first manufacturing joint venture to produce an advanced hydrogen fuel cell system in the 2020 timeframe. The integrated development teams are working to deliver a more affordable commercial solution for fuel cell and hydrogen storage systems.
“In addition to our ongoing joint development and production of fuel cells, this battery component collaboration will enable us to take a new step toward the realisation of a sustainable society,” the Chief Officer for Automobile Operations and Managing Officer of Honda, Takashi Sekiguchi, said.
Both Honda and GM Holden have marketed EV cars in Australia and both have withdrawn them from sale with poor sales.
Government support is needed for the venture to succeed as it does in the USA and Europe. European countries are moving toward 100% electric power by the middle from 2040 in some countries.
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