General Motors and Honda, which already have considerable ongoing collaborative projects, are again coming together to co-develop 'a series of affordable electric vehicles based on a new global architecture using next-generation Ultium battery technology'. The two companies with their budget offerings, which plan to compete against Tesla and others, have targeted a global production of millions of EVs starting in 2027, including compact crossover vehicles.
The two auto majors will also work toward standardizing equipment and processes. In the scheme of things, there is also a new all-electric product for North America positioned at a price point lower than the upcoming Chevrolet Equinox EV, building on the 2 million units of EV capacity that GM plans to install by the end of 2025.
The budget EVs that GM and Honda promise can truly set the cat among the pigeons in the sector, which is dominated by pricey offerings from auto majors.
GM and Honda to work on battery technology, too
General Motors, which is pivoting to electric vehicles and investing billions of dollars into it, is already set to manufacture two SUV EVs for Honda, the Honda Prologue and an Acura model. The rollout will begin from 2024.
"The progress we have made with GM since we announced the EV battery development collaboration in 2018, followed by co-development of electric vehicles including the Honda Prologue, has demonstrated the win-win relationship that can create new value for our customers," Shinji Aoyama, Honda senior managing executive officer said.
“Our collaboration with Honda and the continuing development of Ultium are the foundation of this project, utilizing our global scale to enable a lower cost foundation for this new series of EVs for millions of customers,” Doug Parks, GM executive vice president, Global Product Development, Purchasing and Supply Chain said.
Meanwhile, GM and Honda will also discuss future EV battery technology collaboration opportunities, to further drive down the cost of electrification. GM is already working on new technologies like lithium-metal, silicon and solid-state batteries, along with production methods that can quickly be used to improve and update battery cell manufacturing processes.
Honda is making progress on its all-solid-state battery technology which the company sees as the core element of future EVs. Honda has established a demonstration line in Japan for all-solid-state batteries and is making further progress toward mass-production.
GM hopes to achieve carbon neutrality in its global products and operations by 2040, and Honda by 2050.
GM and Honda: The story so far
GM and Honda have developed a close working relationship over many years, including several projects in recent years focused on electric and autonomous vehicle technologies.
In 2013, the two companies began working together on the co-development of a next-generation fuel cell system and hydrogen storage technologies. In 2018, Honda joined GM’s EV battery module development efforts. In 2020, GM and Honda announced plans to codevelop two EVs, including the Honda Prologue, to be launched in early 2024, soon followed by Acura’s first EV SUV.
Further, the companies have an ongoing relationship with Cruise and are working together on the development of the Cruise Origin, one of the first purpose-built fully autonomous vehicles designed for driverless ride-hail and delivery.
