GM and Honda Collaborate to Setup Fuel Cell Manufacturing Plant in Michigan

General Motors has signed an agreement with Honda and the two companies in partnership will mass produce advanced hydrogen fuel cell for future cars.

The electric car segment is growing at a fast pace and top tier manufacturers are finding ways to come up with better battery power that could last long. The hydrogen fuel cell system is one among them and they will be produced under the company name Fuel Cell System Manufacturing LLC. It will operate along with GM’s already operational Brownstown facility located in Michigan. The companies are looking forward to mass produce these cells in the year 2020. About $85 million has been invested in this joint venture and the new plant is expected to create at least 100 new jobs.

The foundation for the partnership between Honda and General Motors was laid sometime ago in the year 2013. Based on the agreement, the two already started bringing their teams together and share intellectual property which will enable them to create advanced hydrogen fuel cells as well as storage systems. With the industry rapidly towards all-electricity, all-autonomous design, demand for such cells could be much higher by 2020. While GM and Honda will use them in a wide range of products (cars) that come under their brand name, they may also sell the cells to other manufacturers who might need them.

“With outstanding teamwork and joint mass production, we will be able to offer great value for our customers by using these cells in future vehicles. The teams at Honda and GM had been working together for the past three years to come up with next generation cell system. They will be cost efficient, small making it easier to mount in cars and will be available in large quantities to meet requirements,” said Toshiaki Mikoshiba, CEO of Honda Motor in North American region.

It is considered to be a very powerful association as both companies jointly holds a total of 2,220 patents allowing them to push the technology further. The collaboration leads to enhancements in fuel cell development. GM is already in number one rank and Honda is at number three for holding the most patents. By moving to fuel cells, all future cars will be able to get rid of emission issues, have better mile range and the issues associated with refueling as well as dependency on petroleum.

Honda has already introduced the Clarity Fuel Cell that offered best in-class range. The newer variants could be launched next year or the in 2019 once development is done.