CHICAGO - America's General Motors and Japanese Honda will work together in developing advanced chemistry battery to accelerate all-electric vehicle production.

According to a statement released on Thursday, the next-generation battery will deliver "higher energy density, smaller packaging and faster charging capabilities" for both companies' future products, mainly for the North American market.

Under the agreement, the companies will collaborate based on GM's next generation battery system with the intent for Honda to source the battery modules from GM.

"This new, multiyear agreement with Honda further demonstrates General Motors' capability to innovate toward a profitable electric portfolio," said Mark Reuss, GM's executive vice president of global product development, purchasing and supply chain.

"GM's decades of electrification experience and strategic EV investments, alongside Honda's commitment to advancing mobility, will result in better solutions for our customers and progress on our zero emissions vision," he added.

Takashi Sekiguchi, chief officer for automobile operations of Honda, said, "In addition to our ongoing joint development and production of fuel cells, this battery component collaboration will enable us to take a new step toward the realization of a sustainable society."

The two auto makers have already cooperated on electrification. They have formed a joint venture to produce an advanced hydrogen fuel cell system.

The integrated development teams are working to deliver a "more affordable commercial solution" for fuel cell and hydrogen storage systems, said the statement.