Lexus announced on Tuesday that it has signed an agreement with an auto startup to help it manufacture electric cars.
The automaker has partnered with Tesla Motors Inc to supply the vehicles for a limited time and will help build the factory that will eventually manufacture the vehicles.
Tesla is the world’s biggest automaker, and its electric cars have become increasingly popular.
But the company’s plans to build a factory for electric cars in Mexico haven’t made much headway, because of regulatory hurdles.
The partnership is one of many that Lexus is making with carmakers.
Last year, the automaker sold about 50,000 electric vehicles in Mexico.
Last year, Lexus said it had bought electric car maker Nivea, which it bought in December.
Lexus shares were up 1.8 percent in afternoon trading.