Toyota and Mazda join forces to develop electric vehicles

Toyota and Mazda have teamed up with automotive components manufacturer Denso to form a brand new company that will develop technologies for electric vehicles.

The three Japanese auto giants announced their plan to create the technological infrastructure needed for electric vehicle systems in light of current policy trends that throttle emissions and increasing EV sales. The new company formed by the deal — dubbed EV Common Architecture Spirit Co., Ltd. — will be mostly owned by Toyota, which holds a 90 percent stake compared to just five percent each for Mazda and Denso.

The new company will be staffed by around 40 "selected engineers" from all three companies, who will work together to create framework technologies for electrification. The tech will be implemented across a wide range of vehicle types, from smaller cars to light trucks, across the Toyota and Mazda brands.

The automakers also plan to build an open business structure that could attract other companies into the fold, although it's not clear if that would mean they will offer stakes in the company or work together through some other means.

The deal comes shortly after Toyota took a five percent stake in Mazda in August and announced plans to develop new technologies. The automakers are also slated to select a location for a joint $1.6 billion U.S.-based auto plant, with aspirations to begin production by 2021.

Toyota and Mazda have both released cars with features that focus on improving traditional fuel economy and emissions — Toyota with its iconic Prius line, Mazda with its SkyActive tech — but they lag behind in pure EV development. The Prius Prime is still most appealing as a hybrid, offering only an estimated 25 miles per charge on battery, while Mazda doesn't plan to drop an electric car until 2019.

By working together, they could bring electrified systems to their brands sooner than they would alone — but the Japanese automakers still trail rivals like Nissan, Chevy, and Tesla, which all have accessible EVs on the road already.