General Motors and Honda will jointly develop hydrogen fuel cell systems in Michigan, investing $85 million in the project while creating 100 jobs.
GM and Honda will put $42.5 million each into Fuel Cell System Manufacturing, their joint venture where they hope to start production in 2020, according to the Detroit Free Press. A GM plant in Brownstown Township in Michigan that currently makes battery packs for the Chevrolet Volt and several other hybrids will be used for the power systems.
The joint company will be managed by a board of directors with three executives from each company and a rotating representative.
"GM and Honda will continue to work together to further enhance refueling infrastructure," said Toshiaki Mikoshiba, chief operating officer of the North American Region for Honda Motor Co. Ltd. and president of Honda North America Inc., per the Detroit News.
"This remains a critical step in the long-term viability and consumer acceptance of hydrogen fuel cell vehicles. Honda believes that hydrogen fuel cell vehicles can act as a core energy system to support a sustainable society and meet the needs of our customers."
GM and Honda have more than 2,220 patents between them, according to the Clean Energy Patent Growth Index. GM and Honda rank No. 1 and No. 3, respectively, in total fuel cell patents filed from 2002 through 2015.
Automakers like fuel cell technology for its environmental benefits, but hydrogen refueling stations remain sparse, which hurts mass deployment, noted the News. GM has worked for decades on its fuel cell technology and has invested nearly $3 billion in it since the late 1990s.