Hitachi Automotive Systems and Honda Motor Co. announced the establishment of a joint venture company for the development, manufacture and sales of motors for electric vehicles on the premises of Hitachi Automotive Systems in Hitachinaka-shi, Ibaraki Prefecture, Japan.

The two companies have conducted discussions based on a Memorandum of Understanding signed on Feb. 3, and entered into a joint venture agreement on March 24 to make more tangible preparations to establish the new company. The newly established company will receive a financial grant from Ibaraki Prefecture, and has been recognized as a relevant project that “promotes the establishment of corporate head office functions” within the prefecture.

Hitachi will own 51 percent and Honda will own 49 percent. The new company will respond to the growing global demand from automakers for electric vehicle motors by developing competitive motors that combine the expertise of the two companies.