Toyota Motor Corporation (TM) and Subaru Corporation (FUJHY) have joined forces to develop a battery-electric SUV as well as an EV technology platform. The companies will sell the new SUV under each of their respective brands and co-work together on the battery-electric platform.

Toyota and Subaru formed a business collaboration in 2005, and have been building on this venture ever since. The companies developed the rear-wheel-drive Toyota 86 and Subaru BRZ as well as Subaru’s Crosstrek Hybrid vehicle.

The companies said the new partnership “builds on their collaborative ties” and represents a “new area of collaboration” for electrified powertrains and components that will help them come to market with electric vehicle technologies faster.

The joint venture was formed out of necessity as the companies look to address growing global government policies, energy situations in varying countries, and new environmental regulations to meet the demands of the EV market efficiently. Together, the companies will address the needs of the electric vehicle market and the challenges it provides by utilizing each other’s strengths, the companies said.

The battery-electric platform that Toyota and Subaru intend to produce will be used across multiple vehicle types, including their sedans and SUVs. Subaru will shift all of its battery-electric development to the joint venture while developing an electrified SUV that takes advantage of the companies engineering, development, and purchasing efforts.

Shares of Toyota stock were up 0.87 percent as of 11:20 a.m. ET on Thursday while shares of Subaru stock were up 0.55 percent at the same time.