Honda is teaming up with QuantumScape, a solid-state battery startup.

The two companies will work together to develop solid-state cells and manufacturing processes.

Honda sees "a range of applications, including automotive" for QuantumScape cells.

The race to put next-generation batteries in electric cars is heating up. Honda is teaming up with QuantumScape, a battery startup, to develop solid-state batteries for EVs and other applications, the companies announced on Thursday.

Honda has quietly been evaluating QuantumScape's technology, and now the companies are moving to the next stage and making their partnership public. The "joint research agreement," QuantumScape says, "includes a multi-year plan focused on solid-state battery development and associated manufacturing processes." Honda recently scrapped plans for a series of next-generation EVs that were supposed to start hitting the U.S. this year. Evidently, the company still sees EVs as an opportunity over the longer term.