Jaguar Land Rover and BMW team up to build a new generation of electric vehicles. As per reports, both companies will join hands to develop the technology and use their combined size to make the component purchases cheaper. Each company will build its own engines at their respective plants located in UK and Germany.

The engineers from both companies will research and develop methods to improve BMW’s fifth generation electric engine in Germany. As per BMW, the motor contains transmission and power electronics in the same shell and does not contain any rare earth metals. This is what it makes it both cheaper to produce and environmentally friendly rather than any other brushless motors of its class.

Nick Rogers, Director of Engineering Jaguar Land Rover said that both the companies’ requirements for the next-generation EDUs to support this transition have significant overlap. Additionally, both companies have an eye on ACES: Autonomous, Connected, Electric, Shared mobility which is expected to be the future of transportation.

This partnership between Jaguar Land Rover and BMW is forcing a number of automakers to team up in the hope of avoiding oblivion in the near future. For instance, Groupe Renault is currently in merger talks with Fiat Chrysler, which would create an automotive advancement.