Car-manufacturers Toyota and Mazda have signed a joint agreement to work together to develop technologies for electric vehicles.
The companies are the latest to focus on the electric vehicle market, with Volvo, BMW and Ford having signalled their intention to invest in EVs in recent months.
The agreement, signed on Friday (4 August) forms part of a wider partnership between the two companies which will also see them establish a joint venture plant in the US to manufacture around 300,000 vehicles per year.
Through the tie-up, the two companies will explore the â€œjoint development of technologies for the basic structure of competitive electric vehiclesâ€ using expertise from both organisations.
â€œThese technologies will allow the companies to respond quickly to regulations and market trends in each country,â€ the companies said.
In a joint statement, Mazda and Toyota, said: â€œThe auto industry increasingly faces great challenges, including stricter environmental and safety regulations for new vehicles and the entrance of competitors from other industries, as well as the diversification of mobility-related businesses.
â€œWith the future of the industry in mind, in addition to leveraging their individual strengths to further improve technologies and reinforce their business foundations, Toyota and Mazda aim to deepen collaboration and achieve sustainable growth through their partnership, rising to face and overcome these pressing challenges.â€
Under the agreement, Toyota will acquire 31,928,500 shares of common stock newly issued by Mazda through a third-party allotment. Mazda will acquire Toyota shares that are equivalent in value to the Mazda shares.