Volvo, Geely and Lynk & Co will all share platform architecture and engine technologies via cross-licensing agreements.

China's Geely Holding has announced plans to establish a new joint venture with subsidiary Volvo.

Aiming to quickly develop next-generation electrified vehicle technology, the memorandum of understanding paves the way for deeper sharing of platform architecture and engine technologies across Volvo, Geely and Lynk & Co.

The new entity will be 50/50 owned by Volvo and Geely, with its headquarters in China and subsidiary in Gothenburg, Sweden.

"Partnerships to share know-how and technologies are common practice in the automotive industry," says Volvo chief HÃ¥kan Samuelsson. "This is the model we are adopting."

The companies already share platforms, including the Compact Modular Architecture (CMA) used for Volvo's 40-series cars and Lynk & Co vehicles.

"Future modular vehicle architectures and other technology will be shared and developed based on cost sharing agreements," the companies said in a statement. "The company leading the development will own the technology and the other group companies will have full access to it through a license, reducing overall development costs."

The automakers did not announce a time-frame for launching the new joint venture.