German carmaker Volkswagen Group (XETRA:VOW) has expanded its partnership with Chinese EV firm Xpeng Inc (NYSE:XPEV)
XPeng, via a new master deal, secures its technology partnership with VW with the new agreement envisaging the first EV with a new tech architecture to start production in 24 months.
Specifically, the tie-up sees a collaboration on the development of an electrical/electronic (E/E) architecture for vehicles produced in China, based on Volkswagen's China Main Platform (CMP) and Modular Electric Drive Matrix (MEB) platform.
In a statement, XPeng - which is listed in New York via ADR – said the deal allows for further collaborative projects, potential beyond the jointly developed E/E architecture.
The deal will see new operations being established in Guangzhou and Hefei, XPeng noted.
XPeng chief executive and chair, Xiaopeng He, highlighted that it was the ‘third major milestone’ achieved between the two companies within a year.
“With the trust built up between Volkswagen and XPENG as well as the dedication by engineers from both parties, we have been executing our joint projects swiftly and realized significant synergies,” He added.
“I look forward to broadening our technology collaboration and win-win strategic partnership.”
Today’s partnership follows a recent and separate EV partnership inked by VW, which earlier this month began a collaboration with Amazon-backed Rivian.