Volkswagen and Mahindra & Mahindra Ltd have signed a supply agreement for key electronic components using the German carmaker’s open platform for electric vehicles, they said in a statement.

Mahindra plans to use certain platform components as well as Volkswagen’s unified batteries for its own electric platform, INGLO, the companies said.

Mahindra shares rose 5.6% in Mumbai trading after the news broke, hitting a record high.

The Indian company will be the first external partner to use unified batteries, with Volkswagen planning to use the new battery technology in 80% of its cells and promising to cut costs in half.

Volkswagen said the agreement will last “several years” and will have about 50 gigawatt hours of energy storage capacity over its lifetime.

The two companies are evaluating further collaboration opportunities, the statement added.

Volkswagen has developed a modular open electric vehicle platform called MEB that is used to build cars from Volkswagen and other group companies such as Skoda and Audi. It also allows Volkswagen to become a supplier of electric technology and components to other automakers.

The supply agreement is the first of its kind for Volkswagen, but the automaker said last September it was in talks with other players for similar deals, including Asian combustion engine carmakers, which are considering Via Volkswagen partnership.

(This story has not been edited by News18 staff and is published from a Yonhap news agency feed – Reuters)