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 Håkan 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.