Honda and Hitachi Automotive Systems today announced the establishment of a joint venture company for the development, manufacture and sales of motors for electric vehicles. The two companies had unveiled plans for the formation of the new JV back in February, and had inked a definitive agreement in March.

The new company, Hitachi Automotive Electric Motor Systems, will be located on the premises of Hitachi Automotive Systems in Hitachinaka-shi, Ibaraki Prefecture. Hitachi holds 51% of the investment, and Honda the remaining 49%.

The objective of the new company will be to expand the global supply of motors, both to Honda and other automakers. The companies say that with the market for electric vehicles expected to continue to grow, the collaboration will strengthen their competitive advantage and business foundation for the development of motors.

It was previously reported that subsidiary operations of the new JV are planned in the future for the United States and China, each with manufacturing and sales functions.