General Motors (GM) and Hyundai Motor Company have announced a partnership on Thursday, Sept. 12, aimed at making vehicles more affordable by improving supply chains and reducing production costs. The collaboration focuses on shared sourcing of key materials, including battery components for electric vehicles (EVs), as well as steel and other materials used in both electric and gas-powered models.

“GM and Hyundai have complementary strengths and talented teams,” GM Chair and CEO Mary Barra said. “Our goal is to unlock the scale and creativity of both companies to deliver even more competitive vehicles to customers faster and more efficiently.”

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By pooling resources, the companies hope to achieve greater efficiencies, ultimately leading to lower prices for consumers. The partnership looks to help both automakers address rising material costs and challenges in EV production.

“This partnership will enable Hyundai Motor and GM to evaluate opportunities to enhance competitiveness in key markets and vehicle segments,” Hyundai Motor Group Executive Chair Euisun Chung said. “As well as drive cost efficiencies and provide stronger customer value through our combined expertise and innovative technologies.”

In addition to cost-saving measures, the two companies plan to collaborate on new vehicle development and clean energy technology, including potential advances in hydrogen-powered cars. GM and Hyundai have signed a memorandum of understanding to formalize the initial stages of their cooperation, with plans to implement more binding agreements in the future.