General Motors Company (NYSE:GM) and Honda Motor Co Ltd (ADR) (NYSE:HMC) are joining forces to develop a project that involves new hydrogen fuel cell technology.
The two automotive giants will help to advance the industry, creating 100 jobs in the Brownstown Township in Michigan, near Detroit. The technology could be the future of the industry as hydrogen fuel cells will result in vehicles that product zero emissions, proving to be especially good for the environment.
Each company will put in $42.5 million for a total of $85 million that will be used as part of the Fuel Cell Manufacturing System that will begin in 2020. The advancement of the technology will take place in a GM plant where it makes battery packs for Chevrolet Volt cars, as well as several hybrids.
The Michigan Economic Development Corp. announced soon after that it would offer a $2 million grant to the project that is based on how it performs. The agency is the state’s economic development arm.
The state itself could create 64 new jobs, or up to 70 total jobs thanks to the project. The technology consists of fuel cell vehicles that operate on hydrogen, making water vapor the only emission from these cars.
GM and Honda have been working on a project to develop fuel cell systems and hydrogen storage technologies since 2013.
GM shares fell 1.9% Monday, while HMC stock slipped 0.6%.
