The BMW Group and Toyota Motor Corporation have officially announced that they have signed an agreement to collaboratively research next generation lithium ion battery cells, following an MoU signed in December last year. Research work begins immediately, and will focus on increasing the performance and capacity of li-ion battery cells via the usage of new combinations of materials for cathodes, anodes and electrolytes.

A fleet of BMW ActiveE electric cars – read our test drive story.

This is not the first time BMW and Toyota have collaborated – they also entered into a contract where BMW will supply Toyota its 1.6 litre and 2.0 litre diesel engines to the Japanese company beginning 2014.