Get Newsletter Submit a Tip

GM and Honda to Collaborate on Battery Development

June 7, 2018 0 Comments

In 2017, General Motors and Honda announced plans to invest $85 million to form a joint venture to produce hydrogen fuel cell systems at a Michigan plant. Now, the automakers are deepening alliance, signing a deal to collaborate on battery development for electric vehicles.

The automakers are going in together on the development of battery components “to accelerate both companies’ plans for all-electric vehicles,” they said in a statement on Thursday, with the goal to improve battery performance (e.g. longer range, lighter parts, fast charging). The work is “based on GM’s next-generation battery system.”

Both automakers already offer EVs – the Chevrolet Bolt and Honda Clarity – but are expected to expand their range of offerings.

As part of the deal, Honda will buy battery modules from GM, which is already manufacturing batteries in Michigan. The financial details of the deal were not disclosed.

“This new, multi-year agreement with Honda further demonstrates General Motors’ capability to innovate toward a profitable electric portfolio,” said GM Global product development and supply chain chief Mark Reuss. “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.”

The partnership between Detroit-based GM and Japan-based Honda demonstrate the auto industry’s emerging strategy of alliances over old rivalries. The automakers competed for customers in the past, but the tech deals will allow both to save on costs and get new, expensive tech onto the market faster.

About the Author: