It’s been seven years since Volvo was bought over by Geely, but the two companies are finally coming together to facilitate greater technology sharing between each other. Plans have been announced for a new joint venture technology company, aimed to deepen synergies and provide economies of scale that will allow a more rapid development of next-generation electric vehicle technology.

The signed Memorandum of Understanding (MoU) states that Volvo, Geely and the latter’s Lynk & Co startup will share vehicle architecture and engine technologies via cross-licensing agreements managed by the new company, owned 50:50 by Volvo and Geely. It is said that the brands will also deepen cooperation through the common sourcing of components and the reduction of procurement costs.

As such, licence agreements will allow Volvo, Geely and Lynk & Co to use each other’s technologies, although the intellectual property rights will remain with the company that originally developed it. The companies already share the new Compact Modular Architecture (CMA), which will be used on Volvo’s upcoming 40 Series cars and Lynk & Co models.

In the future, modular vehicle architectures and other tech will be shared and developed based on cost sharing agreements, reducing overall development costs. The collaboration is expected to be expanded later on to include electrified vehicle components such as battery cells, motors and charging systems, in order to maximise synergies across the greater Geely group.

Volvo has also announced that it will purchase a significant minority share in Lynk & Co, reflecting the latter’s use of Volvo technology both now and in the future.