The two companies have reached a basic agreement toward collaboration for a high-capacity, high-output lithium-ion battery with the goal of establishing a joint venture company by the end of 2023

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This agreement to work toward the joint research and development of lithium-ion batteries and battery production methods, as well as the establishment of a supply chain for key raw materials and a highly efficient battery production system.

The two companies say they will work toward the establishment of a joint venture company by discussing a broad scope of collaborations. These will include research and development of a high-capacity, high-output lithium-ion battery, primarily for EV use, and the required production methods

Additionally, the companies say this collaboration would see planning for products that utilise technologies resulting from the joint research and development and designing of an efficient production operation including the supply chain for key raw materials.

This announcement adds to the growing list of OEMs partnering with battery technology suppliers, with Honda also recently formalising its joint venture with LG Energy Solution (LGES) to build a new battery production plant in the US to supply the Japanese OEM’s North American production network.