The move could extend Panasonic’s lead as the world’s biggest producer of lithium-ion batteries, a key component for tomorrow’s electric vehicles.

On Wednesday, a joint statement by Toyota Motor Corp and Panasonic Corp said, the duo are considering a joint development of batteries for electric vehicles.

The strategic move could potentially aid Panasonic maintain and extend its lead as the world’s largest automotive lithium-ion battery manufacturer.

The development builds on an existing agreement under which Panasonic manufactures batteries for Toyota’s gasoline hybrid and plug-in hybrid vehicles.

In 2016, Toyota had said it planned to add EVs to its product line, marking a strategic shift away from its previous position wherein it saw fuel-cell vehicles and plug-in hybrids as the most sensible technologies to make cars environmentally friendly.