Toyota Motors and Panasonic gave a joint statement on Wednesday that the companies are pondering to co-develop batteries of electric vehicles (EVs). The partnership is mutually beneficial but it will help Panasonic more in expanding its market to the automotive industry in lithium-ion batteries.

This announcement will be an extension of existing agreement which is focused on supplying batteries for Toyota’s hybrid electric vehicles. Now Panasonic will supply the batteries to Toyota Company for its fully electric vehicles.

Toyota last year said, the company is planning to add fully electric vehicles to their fleet by early 2020. The company is planning to shift from its previous green-car concept focusing on plug-in hybrid and fuel-cell vehicles. Toyota plans to start marketing all EV vehicles in 2020.

Panasonic has not collaborated for the first time in the auto industry; the company is the major supplier of EV battery for luxury U.S. brand Tesla Inc. The company currently holds 29% of the market share in supplying batteries for plug-in hybrids and EVs according to the research data published by Nomura Research during the first half of 2017 reported by Reuters.

The other rivals of EV batteries include LG Chem Ltd which holds 13 percent of market share, China’s BYD Co Ltd holds 10% of market share while; Amperex Technology Co Ltd holds 9% of market share in the industry.

Panasonic considers batteries as the core process of their business, the company plans to double its revenue generated from the auto industry to double by $22.5 billion in the year 2022. The company is also expanding its battery production capacity globally.

Panasonic already started the mass production of battery cells at Tesla’s Gigafactory in the U.S. earlier this year, now the plan is to open up the new similar facility in Dalian, China to start parallel mass production of battery cells. Not only this, company plans to start new production lines in Japan as well.

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