Honda Motor and General Motors have started commercial production of hydrogen fuel cell systems.

Honda plans to roll out sport utility vehicles equipped with the system in both Japan and the United States this year.

The two automakers announced on Thursday that production has started at their joint-venture plant near Detroit, Michigan.

They say production costs have been slashed to one-third of the previous level through new materials and other means. They also say the system's durability has been doubled so that it can operate at temperatures as low as minus 30 degrees Celsius.

Honda has been focusing on the hydrogen business as well as development of electric vehicles as part of its efforts to achieve carbon neutrality.

"We want customers to know that fuel cells are reliable enough to withstand practical use. We are working to get them widely used as soon as possible," said Suzuki Tetsuo, vice president of the Fuel Cell Manufacturing System joint venture.

Honda also aims to sell the fuel cell system as power-generation equipment to other companies.