The BMW Group and Jaguar Land Rover on Monday stated they are joining forces to jointly develop electric motors, transmissions and power electronics, an alliance designed to lower the costs of developing electric cars.

Starting next year, the BMW Group will introduce this electric drive unit, the fifth generation of its eDrive technology, with the BMW iX3 Sports Activity Vehicle, the company stated. The Gen 5 electric drive unit will be the propulsion system upon which subsequent evolutions launched together with Jaguar Land Rover will be based.

“The automotive industry is undergoing a steep transformation. We see collaboration as a key for success, also in the field of electrification,” said Klaus Fröhlich, Member of the Board of Management of BMW AG, Development.

The cooperation allows the BMW Group and Jaguar Land Rover to take advantage of cost efficiencies arising from shared development of future evolutions and production planning costs as well as economies of scale from joint purchasing.

A joint team of BMW Group and Jaguar Land Rover experts located in Munich will further develop the Gen 5 power units with production of the electric drivetrains to be undertaken by each partner in their own manufacturing facilities.

Both companies will seek to adhere to their own brand-specific propositions in any project, according to BMW.