News out Japan sees Honda and Hitachi starting a joint venture that will focus on providing motors for electric vehicles.

The two companies signed today what they call a “memorandum of understanding, which is the Japanese business version of getting a promise ring to start a future company together.

The still unnamed joint venture will be located in Hitachinaka City in the Ibaraki Prefecture, and be initially capitalized with ¥5 billion (~$44 million).