GM and Honda Collaborating on EV Batteries

In 2003, Saturn Corporation wanted to provide an additional reason for people to buy its compact crossover, the Vue, so execs at Saturn did something that was almost unthinkable at the time:

To create the high-performance Saturn Vue Red Line they turned to Honda to provide a 3.5-liter, 250-hp V6.

It was an astonishing move.

Honda Clarity EV

But GM and Honda continue to show that they can work together on projects, as in their announcement today that they’re collaborating on batteries for electric vehicles.

This time Honda will be sourcing what are described as “next-generation” batteries that are developed from GM. These battery modules are said to have “advanced chemistry” that results in higher energy density, smaller packaging and faster charging capabilities.

What is important about this is that one of the reason why electric vehicle sales are so minimal compared to vehicles powered by things like V6s is because of the expense of the batteries.

The combination of GM and Honda will provide considerable scale in this area, which should mean a non-trivial reduction in costs.

Consequently, electric vehicles will become more affordable, and if there is higher energy density with the new chemistry, then there will be longer range capabilities for the electric vehicles, thereby addressing another concern that people have regarding EVs.

Chevy Bolt EV

It is worth noting that GM and Honda have established a joint venture company that is developing a hydrogen fuel cell system that is anticipated to be produced within about two years.

Clearly these two companies have calculated that when it comes to advancing automotive technologies the combination is greater than the sum of the parts.