General Motors and Honda have announced an agreement for new advanced battery components for electric vehicles, so as to accelerate both carmakers’ plans for all-electric vehicles.

Under this agreement, Honda will source the battery modules from GM. The next-generation battery will deliver higher energy density, smaller packaging and faster charging capabilities for both companies’ future products that are mainly for the North American market.

“This new, multi-year agreement with Honda further demonstrates General Motors’ capability to innovate toward a profitable electric portfolio,” said Mark Reuss, General Motors' executive vice-president of global product development, purchasing and supply chain. “GM’s decades of electrification experience and strategic EV investments alongside Honda’s commitment to advancing mobility will result in better solutions for our customers and progress on our zero emissions-vision.”

GM and Honda already have a proven relationship around electrification; having formed the industry’s first manufacturing joint venture to produce an advanced hydrogen fuel cell system in the 2020 time frame. The integrated development teams are working to deliver a more affordable commercial solution for fuel cells, as well as hydrogen storage systems.

“In addition to our ongoing joint development and production of fuel cells, this battery component collaboration will enable us to take a new step toward the realization of a sustainable society,” said Takashi Sekiguchi, chief officer for Automobile Operations and managing officer of Honda.

Late in 2017, GM had announced the development of two new all-electric vehicles based on the Bolt (due to launch in the next 18 months) following which will be at least 17 new all-electric vehicles, due as early as 2023.