Honda said it and GM combined their expertise in development, production and procurement during the partnership. After reviewing the future of the business, the two companies agreed to discontinue fuel cell system production as a joint venture.

General Motors said last fall that it would stop work on next-generation hydrogen fuel cell development through its HYDROTEC brand and end production of hydrogen fuel cells for data centers and power generation through Fuel Cell System Manufacturing. At the time, GM cited high costs and limited hydrogen infrastructure. GM said hydrogen continues to show potential for specific industrial uses, including backup power, mining and heavy trucking, but said consumer adoption has been constrained by infrastructure gaps. 

According to the U.S. Department of Energy, there are 61 hydrogen refueling stations nationwide, compared with more than 250,000 Level 2 or faster electric vehicle charging locations.

GM said it is redirecting research, development and capital toward batteries, charging technology and electric vehicles, which the company said show a clearer path to scale and customer value.

Honda said it plans to continue developing next-generation fuel cell technologies independently as it works to expand its hydrogen-related business. 

The company stated, "[We] will leverage next-generation fuel cell system technologies developed independently... and strive to further expand business opportunities in order to grow [our] hydrogen business as one of [our] new core businesses."