GM and Honda launch $85m US fuel cell joint venture
General Motors and Honda will invest $85 million in a Michigan-based joint venture to manufacture hydrogen fuel cell systems from 2020, aiming to reduce costs and boost adoption.
General Motors and Honda have agreed to invest $85 million in a new joint venture to manufacture hydrogen fuel cell systems in Michigan. The partnership, announced in January 2017, will see the two companies share development and production at a facility in Brownstown, with production targeted to begin in 2020.
The new entity, Fuel Cell System Manufacturing, LLC, will operate from GM’s existing battery plant. The aim is to pool resources and achieve economies of scale, making fuel cell systems more affordable for future vehicles from both brands. Parts produced at the site will be integrated into GM and Honda models, although only Honda currently offers a production fuel cell vehicle.
Background to the partnership
GM and Honda began collaborating on fuel cell technology in 2013, but this is the first time the two have established a manufacturing joint venture. Honda has a longer history with fuel cell vehicles, having launched the FCX in 2002 and the FCX Clarity in 2008. Its latest Clarity Fuel Cell is now available in the US. GM, meanwhile, has yet to launch a production hydrogen car but plans to use the new facility’s output in models from 2020 onwards.
The companies expect the partnership to lower production costs by increasing output volumes and sharing expertise. Hydrogen fuel cell vehicles remain expensive to manufacture and face infrastructure challenges, but the move signals both firms’ continued commitment to the technology. Honda dropped its US natural gas Civic to focus on hydrogen, while GM has been developing prototypes for commercial and military applications.
What it means for hydrogen vehicles
The joint venture is intended to accelerate the adoption of hydrogen fuel cell vehicles by making the technology more accessible. Honda’s Clarity Fuel Cell is already on sale in the US, and GM’s first production fuel cell vehicle is expected to follow once manufacturing ramps up. Both companies are betting that cost reductions and increased supply will help fuel cell vehicles compete with battery-electric and hybrid models. For more on the technical progress of the partnership, seeHonda and GM's Fuel Cell Partnership Yields Smaller, Cheaper Stack.
- Honda FCX (2002): First-generation fuel cell car
- Honda FCX Clarity (2008): Second-generation hydrogen saloon
- Honda Clarity Fuel Cell (2016): Latest US-market fuel cell vehicle
