Sony and Honda have signed a memorandum of understanding to set up a new company to build electric cars.

The new joint venture is scheduled to be installed in 2022 and both companies expect the first EV model to arrive in 2025.

The new company will design, design, build and sell electric vehicles, while Honda will build production facilities and build the Sony Mobility service platform.

Sony has already announced to the world that it will return to electric cars when it unveiled the Vision-S concept at CES 2020. Vision-S02 was released in January of this year, with Sony Mobility Inc. set to launch in the spring of 2022 and develop electric vehicles. The plan now includes Honda.

Sony CEO Kenichiro Yoshida said, “Through this partnership with Honda, which has amassed extensive global experience and achievements in the automotive industry over the years, it continues to revolutionize the industry.”

Honda CEO Toshihiro Mip added: “The new company aims to be at the forefront of innovation, evolution and global expansion. From customers. We will do this by aligning the technical assets of both companies, using Honda’s latest technology and knowledge of the environment and safety.