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GM–Honda battery partnership could improve charge times, reduce costs

General Motors (GM) CEO Mary Barra speaks to the news media before the automobiile maker's annual meeting of shareholders at GM world headquarters June12, 2018 in Detroit, Michigan.
General Motors CEO Mary Barra speaks at the annual meeting of shareholders at GM world headquarters in Detroit on June 12, 2018. Photo: Bill Pugliano via Getty Images

GM and Honda recently announced a deal to co-develop next-generation battery systems for future electric vehicles (EVs) in North America. Named the EME 1.0, the battery system relies on GM internal designs and is said to have a smaller footprint than current commercial models. Honda will procure battery systems from GM as part of this arrangement.

Why it matters: The firms will share development resources and costs­ to improve battery charge times while maintaining high energy density. In addition to their smaller footprint, these batteries could cut manufacturing and materials costs up to 50%.