"After extensive studies and analysis, we have come to a mutual decision to discontinue the program," the firms said in a joint statement.
No reason was given, but automakers are reportedly slowing expansion plans in EVs because of cooling demand, particularly in China.
GM said this week that it was "moderating the acceleration of EV production in North America to protect our pricing, adjust to slower near-term growth in demand, and implement engineering efficiency and other improvements".
GM and other US automakers have also been hit by a lengthy strike by factory workers in the United States.
Japanese automakers have lost market share in key markets in recent years due in part to a slow rollout of EV's, having long focused on hybrid vehicles instead.
The tie-up announced in 2022 aimed to develop electric cars cheaper than the US firm's planned $30,000 Chevrolet Equinox.
Honda added that it still hoped to achieve 100 percent electrified vehicle sales by 2040.
Honda and GM are still working together in other areas, including a recently announced plan to launch driverless taxis in Tokyo in 2026.
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