General Motors (GM  ) and Honda Motor Company (HMC  ) recently announced they will soon come out with a set of new affordable electric vehicles based on General Motors' next-generation Ultium battery technology.

The project is intended to come out with millions of discounted electric vehicles, especially compact crossover vehicles, which will start in 2027.

"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," General Motors Chair and CEO Mary Barra said in a press statement.

Rick Schostek, EVP of American Honda, stated that Honda is not presently revealing the exact vehicles that will utilize General Motors' Ultium technology or Honda's e:Architecture platform. And, while General Motors is not currently producing a high amount of all-electric vehicles, they have taken great strides to ensure that electric vehicles can be developed by them in high amounts in the future.

Directly after General Motors made the announcement about the Ultium, Honda made it known that they would collaborate with them in order to bring two types of electric vehicles to the United States: the Honda Prologue and the electric Acura SUV. Both of these vehicles are supposed to be released in 2024, and Honda has revealed that they intend to release around 70,000 vehicles.

The partnership between General Motors and Honda will generally help the two companies when it comes to encouraging the vehicles to market at a faster pace. This way, they can both gain influence when it comes to the areas of technology, design, or sourcing techniques.

Cost-effective electric vehicles are integral when it comes to the taking on of upcoming technologies. Electric vehicles are gradually heightening in popularity; however, they are mostly priced according to what "luxury purchasers" can afford. They are anticipated to cost under $30,000, according to Ken Morris, General Motors' executive vice president of electric, autonomous, and fuel cell programs.