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STORY: General Motors and Honda announced on Tuesday that they will co-develop a line of "affordable" electric vehicles based on a new joint platform, deepening a partnership to bring EVs that cost less than $30,000 to the market.

The tie-up, which will utilize GM's Ultium battery technology, is expected to produce millions of lower-priced EVs, including compact crossover vehicles, starting in 2027.

It also expands on plans for GM to begin building two electric SUVs for Honda starting in 2024 - the Honda Prologue and an Acura model.

And GM said the price tag planned for the Chevrolet Equinox SUV will come in below $30,000.

The deal is part of GM's push to achieve carbon neutrality in its global products and operations by 2040 and eliminate tailpipe emissions from light-duty vehicles in the U.S. by 2035.

Honda has said it aims to reach carbon neutrality on a global basis by 2050.