The announcement expands on GM's plans to start building two electric SUVs for Honda from 2024 – the Honda Prologue and the Acura model.
The deal between GM and Honda is expected to bring affordable electric vehicles, including compact crossover vehicles, built using GM's Ultium battery technology.
“The compact crossover is the automotive sector with the largest sales in the world with an annual volume of more than 13 million vehicles,” the company said.
GM and Honda did not disclose the figures the two companies spent on the collaboration.
GM Chief Executive Mary Barra said that GM's electric vehicle price would be below the $30,000 planned for the Chevrolet Equinox electric SUV. She said the new lower-priced vehicles would be “attainable EVs.”
The collaboration also includes the development of battery technology, which largely determines the price of electric vehicles.
GM itself has a target of achieving carbon neutrality in its products and global operations by 2040, while Honda has said it will strive to achieve carbon neutrality globally by 2050.
Honda has a stake in the GM Cruise car subsidiary, which is developing the Cruise Origin autonomous electric vehicle.