DETROIT -  Two automakers once thought of as rivals have announced a partnership to co-develop electrical vehicles based on the Ultium Battery technology.

General Motors and Honda issued a joint statement on Tuesday announcing plans to begin making millions of EVs starting in 2027, including compact crossover vehicles.

Noting annual industry production of more than 13 million vehicles make crossovers the largest segment in the world, the two companies say they hope to leverage technology, design, and sourcing strategies to make quality, affordable vehicles.

GM and Honda say they will also discuss future EV battery technology collaboration opportunities, to reduce the cost of electrification, improve performance and drive sustainability for future vehicles.

GM is said it is working to accelerate new technologies like lithium-metal, silicon, and solid-state batteries, along with production methods that can be used to improve and update battery cell manufacturing processes.

Honda working on solid-state battery technology which the company sees as the core element of future EVs.

“GM and Honda will share our best technology, design, and manufacturing strategies to deliver affordable and desirable EVs on a global scale, including our key markets in North America, South America and China,” said Mary Barra, GM chair and CEO.  “This is a key step to deliver on our commitment to achieve carbon neutrality in our global products and operations by 2040 and eliminate tailpipe emissions from light duty vehicles in the U.S. by 2035.”

GM and Honda have worked on several projects in recent years focused on electric and autonomous vehicle technologies.

In 2013, the two companies began working together on the co-development of a next-generation fuel cell system and hydrogen storage technologies.

 In 2018, Honda joined GM’s EV battery module development efforts. In 2020, GM and Honda announced plans to codevelop two EVs, including the Honda Prologue, to be launched in early 2024, soon followed by Acura’s first EV SUV.

“Our collaboration with Honda and the continuing development of Ultium are the foundation of this project, utilizing our global scale to enable a lower cost foundation for this new series of EVs for millions of customers,” said Doug Parks, GM executive vice president, Global Product Development, Purchasing and Supply Chain. “Our plans include a new all-electric product for North America positioned at a price point lower than the upcoming Chevrolet Equinox EV, building on the 2 million units of EV capacity the company plans to install by the end of 2025.”

General Motors in partnership with LG Chem is building an Ultium Battery plant in Lordstown, Ohio.

In addition, plans call for another battery plant that will go online next year in Springhill, Tennessee, as well as a third plant planned for 2024 in Lansing, Michigan.