A new partnership to produce electric vehicles (EVs) has just been created making the EV industry a lot more robust and exciting as global automakers continue their effort to reduce emissions and their impact on the environment.

Honda Motor Co., Ltd. and Hitachi Automotive Systems, Ltd. has announced a joint venture company aimed at developing, manufacturing of electric vehicles for sale in Japan, China and in the United States.

The joint venture gets a financial boost in the form of a grant from the Ibakari Prefecture, the home of Hitachi Automotive Systems, in addition to its 5-billion yen capital.

Hitachi will own 51 percent of the new company while Honda will have 49 percent.

Aside from EVs, the joint venture will also build motors for petrol and plug-in hybrids.

More and more of these partnerships are being formed by automakers with parts suppliers to defray production costs and to also get their expertise in high volume production.