General Motors will provide advanced batteries to Japan’s Honda Motor, the companies stated Thursday, a move that could apparently reduce the expense of future electric vehicles at both automakers after 2020.
The automaker stated the new batteries, which it has branded EME 1.0 and first described last fall, will be smaller than present EV batteries, can be charged more sooner and will provide more energy.
Battery packs, typically the most costly component of electric vehicles, can cost $10,000 to $12,000 – almost a third the price of GM’s Chevrolet Bolt EV. The automaker aims to cut that price nearly in half by 2021, sources informed Reuters earlier this year.
GM and Honda on Thursday stated they would “collaborate” on the batteries, with GM providing cells and modules, mostly for electric vehicles to be sold by both companies in North America.
A source knowledgeable with GM’s plans stated its current battery cell supplier, Korea’s LG Chem, is anticipated to provide cells for the new battery, which is mostly a GM design.
The new batteries are anticipated to start production around 2021, the source said.
GM refused to provide more details, and stated it had not finalized supplier agreements for the new batteries. LG Chem did not replied immediately to a request for comment.