General Motors and LG Group will jointly design and engineer electric vehicles, the companies said Thursday.
LG is already the battery supplier for GM's plug-in electric hybrids the Chevy Volt and Opel Amepera.
The companies said the new partnership will help the top US automaker expand the number and types of electric vehicles it produces and will allow the Korean conglomerate to expand its portfolio.
The announcement comes days after Ford and Toyota unveiled plans to jointly develop a new hybrid system for light trucks and sport utility vehicles.
Automakers are ramping up their development of alternative technologies ahead of stringent new emissions and fuel economy standards being imposed around the world.
Electric and hybrid vehicles are expected to play a major role in helping them reach recently announced US standards of 54.5 mpg (23.2km/l) by 2025.
"Many solutions for tomorrow's transportation needs may be available more quickly by building on our partnership strategy," GM Vice Chairman Steve Girsky said in a statement.
"Consumers benefit by getting the latest fuel-saving technology faster if we work with the best suppliers and we save time and money in the development process."
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