General Motors and Hyundai signed a memorandum of understanding which could lead to the two automakers working together on green technology.
A non-binding memorandum is the first step towards a relationship between GM and Hyundai. The potential partnership will focus on leveraging the automakers' combined economies of scale to reduce costs. That could include areas such as fuel cell vehicles and EV battery production.
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“Cooperation projects that may be focused co-development and production for passenger and commercial vehicles, internal combustion engines, and clean energy technologies, electricity and hydrogen,” the automakers said.
The two automakers will also “review new opportunities for combined availability“Raw materials for batteries, steel, and other raw materials.” GM in 2022 said it had already secured enough battery raw materials to establish an annual North American production capacity of 1 million EVs by 2025, although it has now withdrawn from that target after the problems. in strengthening its Ultium hardware.
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This will be GM's second major partnership with another automaker related to EVs. The existing partnership with Honda has seen GM produce the Ultium-based Acura ZDX and the Japanese automaker's Honda Prologue electric SUVs. But GM and Honda in 2023 confirmed the first end of the partnershipcanceling plans to make millions of EVs together—including affordable models.
Honda is now focusing on developing EVs in-house. It is targeting 2 million annual EV sales by the end of the decade for a family of next-generation EVs called the 0 Series, and is partnering with Sony on the Afeela EV product. That could leave room for GM to bring in another automaker partner for future electrification plans.