The proposed partnership will allow Mazda to use Toyota’s hydrogen fuel cell system and plug-in technology. Mazda would then provide its fuel-efficient Skyactiv gasoline and diesel engine technologies to Toyota, according to the Wall Street Journal.
The partnership also allows Mazda to use some of Toyota’s gasoline-electric hybrid technology, while Mazda is set to produce a smaller car for Toyota in Mexico.
Toyota announced last week that its hydrogen fuel cell sedan Mirai will be available to eight northern and southern California dealers in October.
Toyota plans to produce 700 Mirai sedans in 2015 and an estimated 2,000 units in 2016.
Although Toyota increased the production after receiving 1,5000 initial orders in Japan, the company is still trying to promote fuel cell technology to make it more commonplace.
Toyota has already decided to share some of its patents concerning fuel cell technology for free, hoping this will speed up the development of the infrastructure.
A joint committee will evaluate which technologies will be the main focus for future cars, and also collaborate on new environmental and safety technology.