GM and Hyundai plan to work together on cars and clean-energy tech

It’s not totally uncommon for major automakers to buddy up on projects, share their knowledge and try to find ideas that benefit all parties. The latest to are and . Through their collaboration, they hope to improve their competitiveness while trying to reduce the costs and risks involved with developing new tech.

The two companies have signed a non-binding agreement and they’ll immediately start assessing joint opportunities and working toward binding agreements. According to GM CEO Mary Barra, the aim “is to unlock the scale and creativity of both companies to deliver even more competitive vehicles to customers faster and more efficiently.”

Projects that the two sides are looking at working on together include co-development and production of passenger and commercial vehicles, internal combustion engines and electric and hydrogen clean energy tech. They’ll also explore supply chain efficiency — combined sourcing for the likes of battery raw materials and steel could save them both a bundle. GM and Hyundai will look into ways that they can harness their scale and knowhow to do all of this while reducing costs.

It might be a while before we see any fruits of these labors, but it’s smart for automakers to team up and try to reduce costs, especially with the EV market being somewhat dicey. Ford’s EV division, for instance, is on track to .

There are other types of partnerships between automakers, of course. In June, Volkswagen and Rivian , with the former expected to invest $3 billion into the EV company and a further $2 billion on a joint venture between the two sides.