General Motors and Honda have signed a deal to collaborate on battery development for electric vehicles.
The move deepens the advanced technology alliance between Detroit-based GM and Japan-based Honda, which are already working together on hydrogen fuel cells.
The latest accord involves the development of battery components, including cells and modules, “to accelerate both companies’ plans for all-electric vehicles,” GM and Honda said Thursday in a statement.
The goal is better battery performance, including longer range, lighter parts and speedy charging. The work is “based on GM’s next-generation battery system,” the companies said.
Both companies already offer electric cars, such as GM’s Chevrolet Bolt and Honda’s Clarity, but are expected to greatly expand their range of offerings.
As part of the deal, Honda will buy battery modules from GM, which has established battery manufacturing at operations in Michigan. 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,” GM global product development and supply chain chief Mark Reuss said in a statement.
“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 two companies last year announced plans to invest $85 million to form a joint venture and produce hydrogen fuel cell systems at a plant in Michigan.
Taken together, the battery and hydrogen fuel cell deals illustrate the auto industry’s emerging strategy of choosing partnerships over old rivalries.
While Honda and GM have historically competed for customers, their technology deals will allow each company to save costs and thus get to the market faster on expensive new technologies.