It is possible through collaborative efforts between innovators, research institutions, government agencies and investment firms. Crowley Law LLC is dedicated to drafting, enforcing and updating collaboration agreements for our clients to facilitate practical innovation and technological advancement.
We note that some of the press releases and media reports on these developments casually use the word “partnership.” Based on discussions on other pages on our site, it is unlikely that these arrangements are true partnerships but are rather contractual relationships between the parties, sometimes including licenses for intellectual property or joint ventures in which the companies involved have created a separate limited liability entity.
Business entities in the EV battery field use different types of collaboration agreements, each with its unique attributes and advantages:
Where two or more parties come together to form a new entity with shared ownership and control, opt for joint venture agreements when the parties involved have expertise in different areas of EV battery technology that can be combined for mutual success. These agreements frequently involve licensing of relevant technologies from each party to the joint venture company.
Where EV battery stakeholders collaborate towards a specific business goal without establishing a separate legal entity, it helps EV battery innovators share resources and knowledge while maintaining their independence and ownership of their respective intellectual property.
It involves one party – the licensor – granting the other specific right to use its intellectual property for a limited period to the other party – the licensee. In some cases, there may be licenses from each party to the other for specific technology. These agreements can help EV battery innovators expand their product offerings or enter new markets without incurring massive investments.
The type of collaboration agreement you require depends on your specific goals and business needs. Crowley Law LLC helps EV innovators select collaboration agreements that promote sustainability while driving growth and profitability.
A collaboration agreement facilitates cooperation among the parties that fosters accelerated EV battery technology development. Salient benefits you should be able to provide include:
Provides a transparent framework for adhering to the collaboration’s scope, objectives and goals. This can help minimize conflicts and misunderstandings.
Allows you to anticipate risks in the relationship and mitigate them early enough to avoid substantial problems. We advise including dispute resolution clauses in your collaborative agreement to help manage conflicts.
Specifies resource allocation protocols and each party’s contributions, facilitating access to crucial support for EV battery innovation.
Facilitates a medium for exchanging knowledge and intellectual property, ensuring practical knowledge transfer to catalyze EV battery innovation.
Partnering with reputable and established persons or companies through collaborative agreements improves your brand image, reputation and visibility.
Promotes flexibility in finding solutions for EV battery development that work for all parties involved because the focus is on collaborating rather than confrontation or competition.
Sharing resources through collaborations can reduce research and development costs.
A growing trend toward collaboration in the EV industry may explain the accelerated technological progress. Crowley Law LLC has studied these collaborations to derive critical lessons for emerging and mid-size EV battery companies.
In October 2023, Japanese automaker Toyota partnered with energy company Idemitsu to accelerate the development and mass production of solid-state EV batteries. This collaboration was part of Toyota’s broader strategy to catch up with competitors in the EV market, such as Tesla.
The collaboration combines Idemistu’s material expertise with Toyota’s production capabilities. This should optimize the research and development of solid-state batteries and scale up EV battery production. The benefits hoped for by the parties would place Toyota at the forefront of the next generation of EV technology.
In 2009, EV automaker Tesla entered into a collaboration agreement with Panasonic to support its ambitious EV goals, such as producing high-density lithium-ion battery cells. The collaboration was also intended to expand Panasonic’s production capacity.
The arrangement helped both companies maintain leadership in the EV market through rapid technological innovation. Tesla received around 2 billion battery cells between 2013 and 2017, facilitating its scaled production of the Model S and Model X EVs. Panasonic also gained the opportunity to manufacture and supply lithium-ion batteries from the Tesla gigafactory in Nevada. The sheer scale of operations at the factory allowed Panasonic to obtain and sustain a 10% share in the global EV battery market.
In 2024, American automaker General Motors (“GM”) established a joint venture with Korean chemical company LG Chem to manufacture EV batteries. The collaboration will see LG Chem supply GM with over 500,000 tons of cathode materials, including nickel, cobalt, manganese and aluminum, from 2026 to 2035.
The commercial project will allow GM to secure a long-term cathode material supplier, stabilize its EV production line and save significant research and development costs. The investment in the collaboration should also accelerate EV battery innovation, contributing to both companies’ business objectives.
In April 2024, German automaker BMW partnered with Croatian automaker Rimac Technology to develop a next-generation battery pack for future BMW EVs. Rimac dedicated a significant portion of its Zagreb, Croatia campus to the EV battery innovation.
The collaboration is expected to transform Rimac from a niche company to a high-volume Tier 1 automotive supplier. BMW will also benefit from a long-term supply of EV batteries. From a broader perspective, the collaborative project will accelerate EV battery innovation.
Industry leaders like Toyota and Tesla show that collaboration is key to accelerating EV battery innovation. As an emerging or mid-size company, partnering with innovators is crucial for gaining a competitive edge. Crowley Law LLC is your legal guide through the collaboration journey, offering:
Let us help you navigate the complexities of partnership and secure your place at the forefront of EV innovation. If you’re contemplating a collaboration with another company in any technology field, contact us to schedule a discussion with a member of our team.
We’re here to help.
No. No law states that a collaborative agreement needs to be in writing. However, having a written collaboration agreement ensures clarity on what has been agreed upon. Further, such an agreement can avoid the risk that the arrangement constitutes a general partnership in which each company involved can be subject to liabilities created by other participants. So, a written agreement is highly recommended.
Yes, you can start a collaborative project with an overseas company. However, you must consider legal and tax cross-border complexities involving electric vehicles to protect your business needs.
Technically, you do not need a collaboration agreement. However, an official written contract is required to ensure clarity on the terms of the collaboration project and avoid conflicts and misunderstandings. Further, provisions on confidentiality and nonuse of your company’s intellectual property and proprietary information are crucial for any technology-based business.
Crowley Law LLC is proud to support Hope Through Education and their mission is to help thousands of underprivileged students reach their full potential through the gift of a great education. Learn more about this organization.
