General Motors (GM) will supply advanced batteries to Japan’s Honda Motor, the companies said on Thursday, a move that could significantly reduce the cost of future electric vehicles (EVs) at both car makers after 2020. GM said the new batteries, which it has branded EME 1.0 and first described last fall, will be smaller than current EV batteries, can be charged more quickly and will provide more energy. Battery packs, typically the most expensive component of EVs, can cost $10,000 to $12,000 — nearly a third the price of GM’s Chevrolet Bolt EV. GM aims to cut that price nearly in half by 2021, sources told Reuters earlier this year.

GM and Honda on Thursday said they would "collaborate" on the batteries, with GM supplying cells and modules, mainly for EVs to be sold by both companies in North America. A source familiar with GM’s plans said its current battery cell supplier, Korea’s LG Chem, is expected to provide cells for the new battery, which is mainly a GM design. The new...

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