BMW Group and Toyota Motor Corporation (TMC) have signed an agreement to research the next-generation of lithium battery sells.

The agreement follows the memorandum of understanding concerning a mid-to-long-term collaboration on next-generation environment-friendly vehicles and technologies announced by the two companies on December 1, 2011.

The research project being undertaken under the agreement is focusing on increasing the performance and capacity of lithium-ion battery cells through the use of new combinations of materials for cathodes, anodes and electrolytes.

In addition to the collaborative research agreement between BMW and Toyota, the German brand will supply its 1.6-litre and 2.0-litre diesel engine for the Japanese manufacturer’s models. starting in 2014.