Volvo and Geely have announced a new joint venture that will see the companies share existing and future technologies.

The goal of the joint venture will be to deepen industrial synergies and provide the economies of scale so that both automakers can rapidly develop next-generation electrified vehicle technology. Geely's new Lynk & Co will also benefit from the partnership, which means Volvo, Geely, and Lynk & Co will share vehicle architecture and engine technologies through cross-licensing arrangements of technologies managed by the new joint venture. The companies will also cooperate more closely by commonly sourcing components and cutting costs.

All three companies fall under the Geely Holding umbrella, but the new joint venture will be 50/50 owned by Volvo Cars and Geely Holding. It will be headquartered in China, with a subsidiary in Gothenburg, Sweden.

Both Volvo and Geely already share technology, like the Compact Modular Architecture (CMA) that will underpin Volvo's future 40 series as well as Lynk & Co models.

In addition to announcing the joint venture, Volvo is taking a significant minority shareholding in Lynk & Co. The new automaker will be jointly owned by Geely Holding, Geely Auto, and Volvo Cars.

"Partnerships to share know-how and technologies are common practice in the automotive industry. This is the model we are adopting," said Håkan Samuelsson, president and chief executive. "This planned collaboration will strengthen Volvo's ability to develop next generation electrified cars."

this article first appeared on AutoGuide