General Motors Company (GM) and Honda Motor Company have announced their new partnership, a first in the automotive industry, to mass-produce ‘an advanced hydrogen fuel cell system that will be used in future products from each company.’

The new venture will be called Fuel Cell System Manufacturing, LLC and will operate out of GM’s battery pack manufacturing facility in Brownstown, Michigan starting 2020.

Both automakers will make equal investments of $85 million in the joint venture and it will be run by a board of directors consisting of three executives from each company that will have a ‘rotating’ chairperson and president arrangement.

GM and Honda establish joint hydrogen fuel cell system venture

It is estimated to create nearly 100 new jobs in the area.

This is part of a master collaboration between the two companies that started in July 2013, which establishes the ‘co-development arrangement for a next-generation fuel cell system and hydrogen storage technologies’ by sharing each company’s intellectual property on fuel cell and hydrogen technology.

“Over the past three years, engineers from Honda and GM have been working as one team with each company providing know-how from its unique expertise to create a compact and low-cost next-generation fuel cell system. This foundation of outstanding teamwork will now take us to the stage of joint mass production of a fuel cell system that will help each company create new value for our customers in fuel cell vehicles of the future,” said Toshiaki Mikoshiba, chief operating officer of the North American Region for Honda Motor Co., Ltd. and president & CEO of American Honda Co., Inc. and Honda North America, Inc.

Honda and GM striking up a partnership in the advancement of fuel cell technology

“The combination of two leaders in fuel cell innovation is an exciting development in bringing fuel cells closer to the mainstream of propulsion applications. The eventual deployment of this technology in passenger vehicles will create more differentiated and environmentally friendly transportation options for consumers,” said Mark Reuss, GM executive vice president, Global Product Development, Purchasing and Supply Chain.