The news formalizes Toyota's July announcement about an alliance with the Chinese automaker as part of its broader plan to roll out at least 10 new battery-powered electric vehicles in the country by 2025. Staffing of the new company's engineering and R&D departments will come from the pool of existing Toyota and BYD talent.
BYD has become an active participant in the Los Angeles County electric vehicle scene, with the Chinese corporation opening its largest North American plant in Lancaster in 2013.
The two companies said in a statement that they would each invest 50% of the capital needed to establish the company, which will be set up next year and be based in China.More news: NHL Global Series heading to Finland, Czech Republic in 2020
Ownership of the new company will be evenly split between BYD and its Japanese peer and will focus on research and development and other business related to pure-electric cars and their parts.
Toyota and BYD will partner to develop BEVs for the Chinese market, the two companies announced Thursday. On this occasion, Shigeki Terashi, Executive Vice President of Toyota, said, "We had the same objective to promote extensive usage of electrified vehicles".
One of the biggest producers of electric vehicle batteries and one of the world's biggest automakers are joining forces in a new joint venture to build electric vehicles for the China market. "We hope to further advance and expand both BYD and Toyota from the efforts of the new company with BYD".More news: ABC cancels 'Fresh Off the Boat,' sets finale for February
Toyota and BYD both aim to collaborate in order to develop battery electric vehicles (BEVs) that are appealing to the customers of China. Since 2015 onwards, BYD's sales of BEVs and PHEVs have been ranked first in the world for four consecutive years.
"Over the long-run, the collaboration could further enhance its competitiveness in the market and we believe BYD will remain as the market leader in the (new-energy vehicle) segment backed by its strong product pipeline", the note said.
The cost of developing electric vehicles is, to keep it blunt, expensive.More news: Japan 'specs ban' for women at work sparks backlash
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