• General Motors and Hyundai signed an agreement that could potentially lead to co-developed electric, hydrogen and internal combustion vehicles.
• The two automakers said the agreement is non-binding but that work is already done to come up with binding agreements.

General Motors and Hyundai Motor Company will explore a slew of collaboration opportunities including co-developing future electric, hydrogen and internal combustion vehicles.

According to the memorandum of understanding that was signed today, the two entities will also look into combining forces to source battery raw materials, steel and others.

It’s worth noting that the framework agreement involves GM, which owns several car brands, and Hyundai the individual marque, not Hyundai Motor Group which owns Hyundai, Kia and Genesis. However, the non-binding agreement was signed by GM’s CEO Mary Barra and Hyundai Motor Group’s Executive Chair Euisun Chung.

The two automakers said they will look for ways to leverage their complementary scale and strengths to reduce costs and bring a wider range of vehicles and technologies to customers faster. In other words, they’ll work together to share technologies and know-how to potentially bring cheaper cars, including EVs, to the market.

While this agreement is non-binding, meaning they can bail out of the deal, the two companies said work on binding agreements “will begin immediately.”

“GM and Hyundai have complementary strengths and talented teams. Our goal is to unlock the scale and creativity of both companies to deliver even more competitive vehicles to customers faster and more efficiently,” said Barra.

It’s an interesting and unexpected collaboration between two car manufacturers that are already investing heavily in next-generation electric vehicles that are bound to lower the entry price for potential customers who are not necessarily overly enthusiastic about getting an EV.

The big wave of people who always wanted an EV, even if that meant a higher-than-average price, is reportedly over. Now we need cheaper cars to get the next wave of people interested, and this deal might just help with that.

General Motors’s Ultium woes are behind and the company is chugging along with the launch of several new battery-powered models. At the same time, Hyundai has pledged to continue investing in green vehicles and has seen record sales numbers thanks in no small part to its portfolio of EVs, hybrids and plug-in hybrids. With the two joining forces, the result might be very, very interesting.