GM and Honda partner to develop affordable EVs
Honda and General Motors are partnering to develop millions of affordable electric vehicles (EVs) - costing no more than $30,000. Production is set to start in 2027. The OEMs hope these low-cost EVs will offer a serious boost to electrification.
Honda and GM will use a new global platform to manufacture these cheap EVs under their respective brands, and adopt GM's Ultium battery technology. The joint project also aims to for GM and Honda to work together on technology, design and development of new battery technologies. The announcement deepens the existing collaboration between the two automakers.
GM wants to become capable of producing and selling 2 million EVs by 2025, and Honda aims to focus more on all-electric models, shifting away from hybrids. Honda agreed to invest $2.75 billion in GM's autonomous vehicle unit, Cruise, in 2018, while GM agreed to produce two EVs for Honda for 2024 the model year 2020.
R&D efforts will focus on increasing sustainability and performance while keeping the price tag of EVs at the same level. By lowering the cost of electrification, two companies want to push EVs out of a niche and provide access for all end-users. This goal mainly depends on new battery technologies, including solid-state batteries (SSBs), which will provide a longer range at a lower cost.