GM and Honda to develop affordable electric vehicles that cost less than $30,000

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General Motors CEO Mary Barra speaks during a visit of the US president to the General Motors Factory ZERO electric vehicle assembly plant in Detroit, Michigan on November 17, 2021.
Mandel Ngan | AFP | Getty Images

DETROIT – General Motors and Honda Motor will develop a series of affordable electric vehicles based on a new global architecture, the companies announced Tuesday morning.

The project will utilize GM’s next-generation Ultium battery technology. The first vehicles, including popular compact crossover vehicles, are expected to go on sale in 2027, according to a joint press release.

“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 CEO and Chair Mary Barra said in a statement.

The automakers also said they will discuss future “EV battery technology collaboration opportunities, to further drive down the cost of electrification, improve performance and drive sustainability for future vehicles.”

General Motors revealed its all-new modular platform and battery system, Ultium, on March 4, 2020 at its Tech Center campus in Warren, Michigan.
Photo by Steve Fecht for General Motors

Both automakers are working on next-generation battery development, including solid-state batteries. Solid-state batteries can be lighter, with greater energy density, and provide more range at a lower cost than today’s EVs with lithium-ion batteries.

The new partnership deepens the ties between the two companies regarding all-electric and autonomous vehicles. Honda previously invested $750 million in Cruise, GM’s majority-owned autonomous vehicle unit, and GM produced two EVs for Honda for the 2024 model-year. The companies have also collaborated on battery modules and fuel cell vehicles.

Honda has said it’s developing its own EV technology and plans to start building its own electric vehicles after the two GM-made EVs go on sale in 2024.

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