From betting on hybrids to betting on pure electrics. Toyota has announced that it is entering into a joint-venture with Panasonic to establish a new company that will be making batteries for next-generation electric vehicles or EVs.

The partnership, which will be owned 51 percent by Toyota and 49 percent by Panasonic will cover the research, development, production, engineering, manufacturing, procurement, and management related to automotive lithium-ion batteries, solid-state batteries, and other next-generation batteries.

The partnership will have two manufacturing plants—one in Japan and the other in Dalian, China and will employ around 3,500 people.

And while it’s a given that Toyota will benefit from this joint-venture, products produced by the joint-venture can also be sold to other carmakers through Panasonic.