FCA has teamed up with Terna in order to build a new technology lab in Turin, Italy, while a demonstration fleet will test Vehicle-to-Grid technology (V2G) in support of sustainable mobility inside the FCA Mirafiori industrial complex.

Based on the deal made by Terna CEO Luigi Ferraris and FCA exec Pietro Gorlier, V2G will be one of many sustainable mobility services and technologies to be trialed, although it alone will focus on enabling electric vehicles to interact with the grid through a ‘smart’ charging infrastructure.

According to FCA, when vehicles connect to charging infrastructures, they create a surge in power demand from the grid at certain times of day. However, with the smart management of charging via V2G charging points, electric cars will actually support the management of the grid, by helping it stabilize and reduce car ownership costs at the same time.

“With this agreement, Terna confirms the central role of innovation and research into new technologies at the service of the energy transition in progress. Cooperation with a partner of excellence like FCA enables us to share the specific competences we have acquired, to develop solutions and new flexibility resources required to guarantee a more sustainable, efficient, reliable and safe electric system,” stated Terna CEO and GM, Luigi Ferraris.

Also read: FCA And Renault Merger Talks Could Be Back On The Table

Meanwhile, FCA’s Europe chief, Pietro Gorlier said that the carmaker will utilize the 500 electric model for the trials and that the project itself will commence in the coming months, before reaching 600-700 test vehicles by 2020-21, reports Autonews Europe.

“The agreement with Terna forms part of a series of projects launched by FCA to support electric mobility. Vehicle-to-Grid technologies are an opportunity for optimising car operating costs to the benefit of motorists, and a genuine means of boosting the sustainability and further improving the performances of the electricity grid,” said Gorlier.

FCA will reportedly kick start production of its fully-electric 500 in Mirafiori by the second quarter of next year.