Honda to End US Fuel Cell JV with GM by 2026

Honda will suspend production of its current fuel cell system in the United States before the end of 2026, ending manufacturing at Fuel Cell System Manufacturing LLC (FCSM), its joint venture with General Motors, the company said on Jan. 21. The decision marks a shift in Honda’s hydrogen strategy as it transitions to a next-generation fuel cell system developed independently.

FCSM, based in Brownstown, Michigan, was established in January 2017 as the automotive industry’s first joint venture dedicated to the mass production of advanced fuel cell systems. Honda and GM combined expertise in development, production and procurement to generate operational efficiencies, including shared suppliers, cost reductions and the adoption of advanced manufacturing technologies.

Honda said that after reviewing the results of the collaboration, both companies held extensive discussions on the future of FCSM and agreed to suspend fuel cell system production at the facility. “Given the results of this collaboration, both companies reached an agreement to suspend production of fuel cell systems at FCSM,” Honda said in a statement.

Following the suspension, Honda will deploy a next-generation fuel cell system developed in-house. The automaker said it plans to continue expanding its hydrogen business and position it as one of its future core segments. “Honda will continue leveraging next-generation fuel cell system technologies developed independently and will work to further expand opportunities for its hydrogen business,” the company said.

The move does not signal a withdrawal from hydrogen technology. Honda said it continues to view hydrogen, alongside electricity, as a high-potential energy carrier and noted that it has invested in hydrogen and fuel cell research and development for more than 30 years. The company did not disclose production volumes at FCSM or the financial impact of the decision.

Honda framed the production halt within its broader environmental strategy. The automaker has committed to achieving carbon neutrality across all products and corporate activities by 2050 and is pursuing what it describes as “zero environmental impact” across the full product life cycle, including manufacturing, logistics and resource use.

“Beyond carbon neutrality, Honda is working to achieve zero environmental impact not only from its products but throughout the entire product life cycle,” the company said, citing initiatives focused on clean energy, resource circulation and emissions reduction.

The decision comes as automakers reassess capital allocation across electrification pathways—including battery-electric, hybrid and hydrogen technologies—amid uneven infrastructure development and regulatory uncertainty in key markets. For Honda, the shift away from joint production toward in-house fuel cell systems suggests a move to retain tighter control over technology development as it evaluates long-term demand for hydrogen-powered applications.

Honda did not provide a timeline for deploying its next-generation fuel cell system or specify which vehicle or industrial applications will use the technology following the suspension of FCSM operations.

The  move aligns with Honda’s broader sustainability strategy. In March, MBN reported that Honda de México signed an agreement with Iberdrola México to supply 100% renewable energy to its plants in Celaya, Guanajuato, and El Salto, Jalisco, supporting the company’s goal of carbon neutrality by 2050. Yuichi Murata, president, Honda de México, said the agreement reflects concrete steps toward a carbon-free future and reinforces Honda’s long-term sustainability commitments.