Honda and Hitachi have signed an agreement to create a joint venture focused on developing electric vehicles.
The 5 billion yen ($44 million) joint venture, dubbed Hitachi Automotive Electric Motor Systems, will focus on building electric motors for battery-electric cars, petrol-electric hybrids and plug-in hybrids, Automotive News reports.
The venture was first revealed in February and aims to combine the expertise of the two companies in an effort to meet the rapidly-expanding industry demand for electric motors.
Discussing the joint venture with members of the media, Honda chief executive Takahiro Hachigo said “Producing motors is capital intensive, so rather than just manufacturing them for our own purposes, we would like to produce in large volumes with the possibility of supplying a variety of customers.”
Hitachi will own a 51 per cent stake in the joint venture and Honda will control the remaining 49 per cent.
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