Today, Nissan and Honda announced that they signed an agreement to start a study into the feasibility of a strategic partnership for electric vehicles, according to The Wall Street Journal.

The two Japanese motor companies will look into an EV partnership as part of efforts to eliminate carbon emissions and decrease fatal accidents. Both companies said that the scope of the study they have agreed upon includes software and core EV parts.

Nissan President and CEO Makoto Uchida said in a statement, “It is important to prepare for the increasing pace of transformation in mobility in the mid-to-long-term, and it is significant that we have reached this agreement based on a mutual understanding that Honda and Nissan face common challenges.”

“We look forward to further discussions and aim to find win-wins for sustainable growth,” Uchida added.

Honda Director and President Toshihiro Mibe said that the requirements for their collaboration would be “whether the synergy of the technologies and knowledge that our companies have cultivated will enable us to become industry leaders by creating new value for the automotive industry.”

Nissan announced last February that after it restructured its partnership with Renault and Mitsubishi, it has given its strategy a makeover for key markets.

Last October, Honda announced it had got rid of its plan to collaborate with General Motors to develop a series of lower-priced electric vehicles. This decision moves away from their previous partnership efforts. Despite this setback, both companies are pushing forward with several different joint initiatives, including a mission focused on introducing a driverless ride service in Japan.

As reported by Al Jazeera, this decision comes as both Japanese carmakers have struggled to keep up with and challenge the dominance of Chinese manufacturers in the rapidly growing EV market.

Nissan’s manufacturing output in China saw a significant decline, falling by 24% to around 793,000 vehicles. This marks the first time in over a decade that Nissan’s production in China has fallen below the 1 million mark.

Honda has announced plans to build up its ratio of electric vehicles and fuel cell vehicles to 100% of all sales by 2040.