DETROIT – General Motors and Honda Motor will develop a series of affordable electric vehicles based on a new global platform, the companies announced Tuesday morning.

The project will utilize GM’s next-generation Ultium battery technology. The tie-up is expected to produce millions of lower-priced EVs, including popular compact crossover vehicles, beginning in 2027, according to officials.

“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,” GM Chair and CEO Mary Barra said in a statement.

More affordable EVs are crucial to the mass adoption of the emerging technologies. While EVs are growing in popularity, they’re largely priced for luxury buyers. The GM-Honda developed vehicles are expected to be priced below $30,000, Ken Morris, GM’s executive vice president of electric, autonomous and fuel cell programs, told reporters during a call Tuesday morning.

Company officials declined to disclose financial terms of the new partnership, which will result in vehicles for both Honda and GM brands.

The automakers also said they will discuss future “EV battery technology collaboration opportunities, to further drive down the cost of electrification, improve performance and drive sustainability for future vehicles.”

Both automakers are working on next-generation battery development, including solid-state batteries. Those batteries can be lighter, with greater energy density, and provide more range at a lower cost than today’s EVs with lithium-ion batteries.

“Honda and GM will build on our successful technology collaboration to help achieve a dramatic expansion in the sales of electric vehicles,” Toshihiro Mibe, Honda president and CEO, said in a statement.

GM plans to be capable of producing and selling about 2 million EVs globally by 2025. Honda, a leader in fuel-efficient vehicles, has largely focused on hybrid vehicles but is pivoting to offer more all-electric models.

The new partnership deepens the ties between the two companies regarding all-electric and autonomous vehicles. Honda previously invested $750 million in Cruise, GM’s majority-owned autonomous vehicle unit, and GM produced two EVs for Honda for the 2024 model year. The companies have also collaborated on battery modules and fuel cell vehicles.

Honda still plans to develop its own EV technology and to start building its own electric vehicles after the two GM-made EVs go on sale in 2024, Rick Schostek, American Honda executive vice president of corporate operations, told reporters.