Sony and Honda are teaming up to build electric cars

The company is getting another competitor.

Sony and Honda have signed a deal to develop and sell battery-powered electric vehicles. The companies have signed a Memorandum of Understanding that outlines their plan to establish a joint venture later in 2022.

According to a press release by Sony, the idea is to combine Honda's car-building prowess with Sony's expertise in the fields of telecommunication, network, and entertainment technologies.

The first model should launch in 25 years.

The synergy between the two companies was made possible because their focus has always been different.

Although Sony and Honda share many historical and cultural similarities, our areas of technological expertise are very different. Mibe said in a statement that he believed the alliance which brought together the strengths of the two companies offered great possibilities for the future of mobility.

We intend to build on our vision to make the mobility space an emotional one, and contribute to the evolution of mobility centered around safety, entertainment and adaptability, according to the statement.

In January, Yoshida announced a plan to create a new company called Sony Mobility, which would focus on electric vehicles. The new venture is likely to build on that plan.

At one point, Honda focused mostly on hydrogen-powered electric vehicles, but the Clarity sedan didn't gain much traction despite a global move towards BEVs. The battery-powered electric and hybrid versions of the Clarity were discontinued. Honda plans to shift production to electric vehicles by the year 2040. The Prologue should be the first globally available BEV.