Following on from the recent announcement that Honda and GM are combining forces to develop Hydrogen Fuel Cell technology, the next target for the future of automotive technology becomes clearer.

Hitachi and Honda have today announced the signing of a Memorandum of Understanding to establish a joint venture for the development, manufacture and sales of motors for electric vehicles. This move represents a significant collaboration between automotive supplier and manufacturer¬†“to generate technological synergy and economies of scale that will strengthen their competitive advantage and business foundation for the motors at the core of an electric vehicle system.”

In other words, electric cars should be better and cheaper in the future.

Both companies have been developing electric motors/cars since 1999 and, given the increasing attention paid to environmental factors within the automotive industry, both expect the market for electric vehicles to show continued growth. The new £35million venture is planned to be operational in July 2017 and will expand the supply of electric motors to meet the growing demand from the global automotive industry.

The two companies still need to conduct formal discussions regarding the establishment of the new company but hope that negotiations will be concluded, and an agreement signed, by the end of March 2017.