After nearly a decade of collaboration, Honda is pulling the plug on its fuel cell manufacturing partnership with General Motors. The Japanese automaker announced it will stop producing fuel cell systems at their joint facility in Brownstown, Michigan, before the end of 2026. While this marks the end of one chapter, Honda isn’t walking away from hydrogen technology entirely. Instead, the company plans to shift its focus toward next-generation fuel cell systems developed in-house.
- Honda will discontinue production of its current fuel cell system at Fuel Cell System Manufacturing LLC (FCSM), a joint venture with General Motors, before the end of 2026.
- The decision came after extensive discussions between both companies. Together, they invested $85 million into the Brownstown, Michigan plant.
- Honda will continue using next-generation fuel cell technologies developed independently and aims to grow its hydrogen business as a primary operation.
The FCSM Joint Venture and Its Legacy
Honda and General Motors established Fuel Cell System Manufacturing (FCSM) in January 2017 to develop fuel cell battery systems and optimize parts procurement. Honda describes FCSM as the “first ever joint venture in the automotive industry that would produce advanced fuel cell system.”
The facility combined development, production, and procurement capabilities from both companies, supporting gains in durability and low-temperature performance, the use of advanced manufacturing technologies, and cost reductions through shared suppliers. FCSM invested $85 million and began production of its fuel cell battery system in January 2024, supplying products to Honda’s fuel cell vehicle plant in Ohio.
As this collaboration yielded some positive results, the two companies held extensive discussions regarding the continuation of FCSM business and reached an agreement to discontinue production of fuel cell systems at FCSM.
Why GM and Honda Are Parting Ways
General Motors announced its plan to shutter its hydrogen fuel cell development program in October 2025 to concentrate resources on electric vehicle technology. At the time, GM noted the “path to reaching a sustainable business in fuel cells is long and uncertain.”
The hydrogen infrastructure problem has been a constant thorn for fuel cell vehicle advocates. The company pointed out there are more than 250,000 Level 2+ EV chargers in the United States, but just 61 hydrogen refueling stations. That disparity makes selling hydrogen-powered vehicles an uphill battle.
Honda has struggled to sell its fuel cell vehicles due to limited demand. The company postponed the commercial operations of its fuel cell battery system plant in Japan and reduced its output capacity, partly because the establishment of a global hydrogen market has been slower than expected.
Honda’s Hydrogen Future Remains Alive
Unlike GM, Honda isn’t giving up on hydrogen. For Honda, fuel cell technology remains a central part of its identity. The company has been conducting research and development of hydrogen and fuel cell technologies for more than 30 years.
The Japanese automaker will shift to a next-generation fuel cell system developed in-house. Honda will continue using next-generation fuel cell system technologies developed independently and work to further expand business opportunities to grow its hydrogen business as one of its new primary businesses.
In addition to working toward carbon neutrality for all of its products and corporate activities by 2050, Honda is pursuing “zero environmental impact” with initiatives in three main areas: carbon neutrality, clean energy, and resource circulation.
What Happens to the CR-V e:FCEV?
The decision appears to spell doom for the Honda CR-V e:FCEV. The fuel cell crossover was introduced in 2024 and is available for lease in California. Without the FCSM facility producing fuel cell systems, the future of this hydrogen-powered SUV remains uncertain.
Honda also did not announce whether it would dissolve FCSM. The company has kept quiet about what happens to the workforce or facility after production ends.
A Calculated Bet on the Future
Honda’s decision to go solo on hydrogen tech is a calculated gamble. By developing fuel cell systems independently, the company gains more control over the technology’s direction and can tailor it to match its broader electrification strategy. The automaker is balancing its hydrogen ambitions with a growing focus on battery-electric vehicles through the upcoming Honda 0 Series.
Whether hydrogen vehicles will find their footing in a market dominated by battery EVs remains to be seen. For now, Honda is hedging its bets, keeping one foot in the hydrogen door while sprinting toward an electric future.
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