Automobile manufacturers GM and Honda will team up to develop a series of affordable EVs. On Tuesday, the two companies said that they will base their lineup of affordable electric vehicles on a new, global platform.
GM and Honda To Develop Affordable EVs
The General Motors – Honda joint project will utilize GM’s next-generation Ultium battery technology. This partnership aims to come out with millions of affordable EVs beginning in 2027. The models include compacts and crossover vehicles.
GM Chair and CEO Mary Barra announced the partnership with Honda. “GM and Honda will share our best technology, design, and manufacturing strategies to deliver affordable and desirable EVs on a global scale,” she said. “The vehicles will be introduced to key markets such as North America, South America and China,” she added.
Lower Price Tags Can Help Mass Adoption of EVs
Right now, electric vehicles are popular but remain mostly out of reach for low and lower-middle-class buyers.
Getting affordable EVs into the market is a critical step in ensuring mass adoption of cars powered by batteries instead of oil-based fuels.
Terms of the partnership between GM and Honda remain undisclosed. However, both parties admitted that the venture will produce EVs for both GM and Honda brands.
GM and Honda’s joint venture hopes to introduce affordable EVs at a price range below $30,000. This is according to Ken Morris, GM’s executive vice president of electric, autonomous, and fuel cell programs.
In order to drive the manufacturing costs further down, both parties will collaborate on EV battery technology opportunities.
Ultium Battery Technology
Meanwhile, General Motors introduced an all-new modular platform and battery system named Ultium last March 4. Officials unveiled the new system at the Tech Center campus in GM’s Warren, Michigan facility.
Both GM and Honda are working to develop the technology for the next-generation battery, which can include solid-state models. These are lighter, more energy-dense, and contain more ranger compared to today’s lithium-ion batteries.
Toshihiro Mibe, Honda’s president and CEO, also issued a statement regarding the partnership. “Honda and GM will build on our successful technology collaboration,” Mibe said. This will “help achieve a dramatic expansion in the sales of electric vehicles.”
Honda and GM Partnership
Right now, the two manufacturers’ directions in electric vehicles are nowhere near identical. GM is on the verge of producing and selling 2 million electric vehicles by 2025 worldwide.
Meanwhile, Honda continues its dominance in fuel efficiency through its popular hybrid vehicles. However, it is also pivoting to producing full-electric models.
In terms of the partnership, Honda and GM remain stronger than ever. Previously, the two companies collaborated on a number of successful projects.
Honda invested around $750 million in Cruise, GM’s autonomous vehicle unit. Meanwhile, GM produced two EVs for Honda for the 2024 model year.
They also helped each other with battery modules and fuel cell vehicles. However, Honda plans to continue with its own line of EVs soon as it releases its GM-made cars in 2024.
Watch the CNBC Television video reporting that GM, Honda join forces to develop low-price electric vehicles:
Are you warming up to electric vehicles now that gasoline prices are sky-high? Will you consider buying an EV as your next vehicle purchase?
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