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• Codeveloped EVs are expected to be priced below $30,000
• Two automobile giants will use GM’s Ultium battery tech
General Motors Co (NYSE: GM) and Japanese automobile giant Honda Motor Co on Tuesday said they would develop a series of affordable electric vehicles based on a new joint platform.
The project will help the carmakers codevelop millions of lower-priced EVs, including popular compact crossover vehicles, beginning in 2027, which is expected to beat Tesla Inc (NASDAQ: TSLA) in EV sales.
“GM and Honda will share our best technology, design, and manufacturing strategies to deliver affordable and desirable EVs on a global scale, including our key markets in North America, South America, and China,” GM Chair and CEO Mary Barra said in a statement.
While EVs are primarily targeted and priced for wealthy buyers, the GM-Honda-developed cars, which will be utilizing the Detroit giant’s next-generation Ultium battery technology, are expected to be priced below $30,000, Ken Morris, GM’s Executive VP of electric, autonomous, and fuel cell programs, told reporters.
The new Ultium battery technology will help manufacture lighter fuel cells with greater energy density, providing more range at a lower cost than EVs that are currently being manufactured with lithium-ion batteries.
“Honda and GM will build on our successful technology collaboration to help achieve a dramatic expansion in the sales of electric vehicles,” Toshihiro Mibe, Honda president and CEO, said in a statement.
Both the companies did not disclose the financial terms of the new partnership.
Picture Credit: GM