GM (NYSE: GM) and Honda (NYSE: HMC) today announced the start of production at their 50-50 joint venture production facility called FCSM, the first large-scale manufacturing joint venture to build fuel cells. FCSM was established in Brownstown, Michigan, in January 2017 based on a joint investment of $85 million. The 70,000-square-foot facility has thus far created 80 jobs. The hydrogen power fuel cells built at FCSM will be used by both companies in various product applications and business ventures.

“This is a historic day for the industry as GM and Honda are the first full fuel cell system manufacturing joint venture to begin volume production of fuel cells for transportation and beyond,” said FCSM president Suheb Haq. “We begin the process with raw materials for membrane and electrode all the way through completed systems. Ongoing investment and commitment by both companies is driving our success at FCSM. This commitment aligns with our mission of making high quality, durable and affordable hydrogen fuel cell systems for a wide range of applications and customers.”

Honda and GM engineers began work in 2013 on the co-development of the next-generation fuel cell system. In addition to advancing fuel cell system performance, GM and Honda collaborated to double durability compared to the 2019 Honda Clarity Fuel Cell by using corrosion-resistant materials and by improving low-temperature operation.

Together, the two companies also focused on lowering development and manufacturing costs by using economies of scale, advancing the cell design, simplifying supporting auxiliary equipment, exploiting common sourcing, and reducing the use of costly precious metals. Through this collaboration, the new fuel cell systems will be one-third less expensive to make when compared to the cost of the fuel cell system in the 2019 Honda Clarity Fuel Cell.