Japan's Mitsubishi Motors (OTC:MMTOF) plans to invest in Ampere, an EV and software company to be established by Renault SA (OTC: RNLSY).
The maximum investment in Ampere will be €200 million ($212.91 million).
As a first step of this collaboration, Ampere will supply an EV on an OEM basis in the European market.
For Mitsubishi Motors, the investment is a bold stride in its mid-term management plan unveiled in March 2023, focusing on electric vehicle development.
Mitsubishi Motors Corporation is a member of the Alliance with Renault and Nissan Motor Co. (OTC: NSANF).
Also Read: Renault-Nissan-Mitsubishi Alliance Lists New Initiatives To Ramp-Up Partnership
The company is also intensifying collaboration with Alliance members as part of their commitment to the electrification acceleration phase.
Through this initiative, Mitsubishi Motors aims to improve its EV development technology further and expand its EV line-up.
Renault Chairman Jean-Dominique Senard told Reuters on the sidelines of an event in Paris that he welcomed Mitsubishi's investment and had always been convinced the company would participate in Ampere.
Senard added that he plans to talk in more detail with Mitsubishi during an upcoming trip to Japan, a note by Reuters said.
Price Action: MMTOF shares closed lower by 4.29% to $3.35 on Monday.