General Motors and Honda announced an agreement for the development of new advanced battery components including cell and module to accelerate both the companies’ plans regarding electric vehicles.

Both the companies are targeting to develop a battery that will deliver high energy density, smaller packaging, and fast-charging capabilities that will suit their future products. Under the agreement, the firms will collaborate on GM’s next-generation battery systems so Honda could source the modules from the American automaker. The partnership will benefit both the companies’ vehicles. The combined scale and global manufacturing efficiency will filter down to customers, providing them greater value.

“This new, multi-year 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’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.”

General Motors and Honda already have an established partnership precedent in the form of the industry’s first manufacturing joint venture to produce advanced hydrogen fuel cell systems which will come online by 2020. The integrated development teams regarding the fuel cell technology are working to deliver a more affordable commercial solution for fuel cell and hydrogen storage systems.

Takashi Sekiguchi, Chief Officer for Automobile Operations and Managing Officer at Honda, also commented about the partnership: “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.”

More and more companies are entering formal technology and development partnerships to address the critical electric car development challenge, which is growing more and more urgent with each passing day. While the automotive industry giants can develop an electric car and its related technology all by themselves, it certainly makes more sense to collaborate with a parallel business to share research and production cost. Such collaborations not only speed up the development of technology, but the lower costs incurred in the process can also be transferred to the consumers’ benefit. In simple terms, if Honda and General Motors are able to come up with cost-effective EV components through their technology partnership, they can price their products aggressively, forcing other automakers to follow suit and bring down costs of their own offerings.

Featured Image Credit: Motory