On Friday, Japanese automaker Honda stated, it has decided to purchase a 1% stake in China’s electric vehicle (EV) battery maker Contemporary Amperex Technology (CATL) for an undisclosed amount.

Both companies will jointly develop EV batteries.

The development comes as EV battery makers and automakers pursue an electric vehicle future.

In 2019, CATL had said it would develop batteries with Honda; it had also said it would supply batteries to Volkswagen AG and Tesla Inc.