Toyota and Subaru have announced an agreement that will lead to the two Japanese car-maker's jointly developing a dedicated pure-electric platform.
The architecture, said to underpin Corolla-sized vehicles, will be introduced in European markets by the early 2020s, the car-makers confirmed.
The new pure-electric hatch will be sold as both Toyota and Subaru versions, mirroring the approach taken with the Toyota 86 coupe and the Subaru BRZ.
So far, details remain vague about which car-maker will be responsible for what part of the new architecture's development but it's rumoured the new platform will benefit from Subaru's all-wheel drive expertise and Toyota's electric technology developed by its huge investment in hybrids.
The unnamed platform will also be scalable and end up being used for much larger vehicles including a Camry-sized sedan and larger SUV.
As well as the new platform, Toyota and Subaru will also combine forces on a wider electrification strategy that will be tailored to each market's legislation and infrastructure needs.
Despite the new joint-cooperation, Toyota said it would continue to invest in hybrids and that petrol-electric powertrains remained key to its electrification drive.
The car-making giant also reaffirmed its commitment to investing in new hydrogen fuel-cell tech, a move expected to pay-off with reports the Chinese government will begin favouring the zero-emission fuel technology of EVs.
Toyota has cited the recent need for collaboration is due to the time-critical need for EVs in some markets and the ever-increasing competition in the segment.
Pooling resources will also significantly lower the cost of development by boosting economies of scale and help both Japanese car-makers be competitive price-wise with rivals like the Volkswagen Group that will begin rapidly rolling out its MEB-based vehicles from late this year.