GM and Honda partner to develop affordable EVs
General Motors and Honda announced that they will work together to develop a series of affordable electric vehicles. They are utilizing the same Ultium battery technology to produce all-electric cars that are expected to go farther on one charge and are lower in cost than previous electric vehicles.
The partnership is expected to result in the global production of millions of EVs by 2027.
GM Executive Jim Cain said in an interview that they also want to provide more equitable access to electric vehicles, and called the new collaboration a "win-win." He said the financial investment by both companies in EV programs is immense.
Cain said GM and Honda are also working with other partners to expand charging systems into what he called “charging deserts.” This is especially important for urban areas where most people don’t have off-street parking, and in rural areas with low access to electricity.
Principal Analyst Sam Abuelsamid of the consulting and research firm Guidehouse said it makes complete sense for the automakers to team up and to pool their resources.
He said here are three main goals for automakers to electrify transportation: increasing how far an EV can go on one charge, making the cars more affordable, and investments in charging infrastructure.
Abuelsamid said more models of EV vehicles are coming, but automakers can’t make them as fast as people want. Abuelsamid said that’s in part because of the shortage of raw materials.
Abuelsamid and Cain agree that increased domestic mining for battery-making materials is the best way to ensure a steady supply of EVs in the future. GM and other major car companies have also already started converting manufacturing plants in the U.S. to produce EVs, or building new ones.