Photo by R Nolan on Unsplash

The two major firms' new commitment aims to stake their claim in the competitive and emerging EV market

Beginning in 2027, GM and Honda will produce millions of EVs at affordable prices for new consumers. The EV segment of the automotive market is primarily a luxury with input costs keeping prices too high for mass adoption. To combat this, the two companies have been collaborating on battery technology and have indicated a continuation, “to further drive down the cost of electrification, improve performance and drive sustainability for future vehicles.” This project will utilize GM’s Ultium battery technology as well as shared design and manufacturing strategies. GM has said that its Ultium batteries are capable of 400 miles or more, charge more than 100 miles in 10 minutes and accelerate from 0 to 60 in as low as 3 seconds. 

GM previously announced plans to develop a “ purpose-built” self-driving vehicle back in October 2018 with Honda Motors agreeing to invest 2.75 bn USD in their EV subsidiary Cruise. Honda’s investment is aimed at the development and deployment of self-driving vehicles over the next 12 years. Since acquiring their 5.7% stake in Cruise, the investment's objective seems to be coming to fruition. 

American Honda executive vice president of corporate operations Rick Schostek says that the company still plans to develop its own EV technology and to start building its own EVs after two specific GM-made Evs go on sale in 2024. The deepened partnership aims to “accelerate the process of electrification” and “unlock economies of scale” according to Schotek. In attempting to rapidly adapt, the race for market dominance is heating up. Legacy automotive OEMs, niche tech start-ups, and new EV players will continue to pour more time and effort into maximizing their share of EV drivers. GM Chair and CEO Mary Barra seek to improve in key markets like the US and China.