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General Motors and Honda have formed a joint venture to produce next-generation fuel cell systems at a GM battery pack plant near Detroit that will be used by both companies to create future electric vehicles that rely on hydrogen for power and emit nothing but water from the tailpipe.

The two automakers today announced the formation of Fuel Cell System Manufacturing which will mass produce advanced hydrogen fuel cell systems starting around 2020. The venture will create 100 jobs within GM’s battery pack manufacturing site in Brownstown, Michigan. GM and Honda are splitting the $85 million investment of the joint venture.

Honda began delivery of its all-new Clarity Fuel Cell vehicle to U.S. customers in December following a spring 2016 launch in Japan. The Clarity Fuel Cell offers an EPA-estimated range of 366 miles and fuel economy rating that is the equivalent of 68 mpg. It is a low-volume vehicle for lease at this point. Expect Honda to move faster in using the technology in retail vehicles while GM pursues other applications.

But Reuss said GM is not limiting its thinking to passenger vehicles–although that is part of the plan eventually, especially for fleet vehicles. Expect a lot of work in areas such as military and aerospace. GM has an ongoing partnership with the U.S. Army, including the Tank Automotive Research, Development and Engineering Center. Since 2013 GM and TARDEC have worked to develop better designs and materials for fuel cell system components. GM and the U.S. Army developed the Chevrolet Colorado ZH2 fuel cell vehicle which is being field tested this year. It also has an Exportable Power Take-Off unit that can power equipment in remote areas. GM is also working with the U.S. Navy on systems to power unmanned underwater vehicles.