Nissan Motor Co. (NSANY, Financials) and Mitsubishi Corp. (MSBHF, Financials) will launch a joint venture by the end of fiscal 2024, targeting autonomous vehicle services and electric vehicle battery integration, according to media reports.

• Warning! GuruFocus has detected 3 Warning Signs with NSANY.

The partnership will concentrate on providing passenger transportation services utilizing Level 4 autonomous technology, in which vehicles can run on their own under designated conditions; plans also include for home energy storage options using electric vehicles batteries. With testing set to start in 2025, both firms will jointly fund the venture, The Japan Times reported.

Mitsubishi will use an artificial intelligence-based system to identify best paths while Nissan will supply cars for autonomous driving. Services are supposed to start in Yokohama and Namie in line with government policies of deregulation. Nissan tests autonomous driving technologies in both sites.

The two businesses are also looking at ways to link EV batteries to homes and power networks so that electricity may be stored for household use or sales to run businesses. Recycling former EV batteries is another project meant to stop them from being exported abroad.

By fiscal 2030, Nissan wants to increase its autonomous and EV-related sales to 2.5 trillion; nonetheless, it has found it difficult to create business models to make best use of its car assets. Mitsubishi, meantime, is increasing investments in companies with autonomous driving software in anticipation of demand increase brought on by demographic changes and workforce shortage. The company is also working with big EV battery manufacturers alongside other automakers.

This article first appeared on GuruFocus.