General Motors Co. (NYSE: GM) and Honda (NYSE: HMC) announced an agreement today for new advanced chemistry battery components, including the cell and module, to “accelerate both companies’ plans for all-electric vehicles.” The next-generation battery – it’s claimed – will deliver higher energy density, smaller packaging and faster charging capabilities for both companies’ future products, mainly for the North American market where EV sales remain minuscule.
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 vehicles. The combined scale and global manufacturing efficiencies will ultimately provide greater value to customers. IT’s another example of how automakers are scrambling to cover the cost of future products as they try to morph to mobility companies.
“This new, multiyear 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 and Honda already have a deal over electrification with the industry’s first manufacturing joint venture to produce an advanced hydrogen fuel cell system in ~2020. The 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 realization of a sustainable society,” said Takashi Sekiguchi, Chief Officer for Automobile Operations and Managing Officer of Honda.