Although the Munich-based BMW has been working on electric vehicle technology for six years already, JLR who are now owned by the Indian Tata, has been selling its all-electric Jaguar i-Pace for just six months.
The electric drive system consists of an electric motor, transmission, and power control units, all of which can be contained in one housing.
BMW aims to have 12 full-electric models by 2025.
"The automotive industry is undergoing a steep transformation", said BMW management board member Klaus Fröhlich. "We see collaboration as a key for success, also in the field of electrification". The Range Rover was notably available with a BMW-sourced V8 engine.
Jaguar Land Rover is cutting 4,500 jobs from its global workforce as part of £2.5bn cost-saving programme amid falling sales in China and Europe and record losses of £3.4bn in the last three months of 2018.
It's unclear yet just when these first jointly-developed electric powertrains will make it to BMW, Jaguar and Land Rover production cars, but given the furious pace with which the industry is electrifying, expect them sooner rather than later. Both companies will seek to adhere to their own brand-specific propositions in any project.
The switch to electric drivetrains brings new challenges to automakers: How do we pay for the R&D?
BMW and Jaguar Land Rover on Wednesday announced they will collaborate on next-generation electric drive systems that could potentially feature in hybrids, battery-electric cars, and even fuel cell-electric cars.
The strategic collaboration will build on the considerable knowledge and expertise in electrification at both companies.
The enormous financial effort needed to develop electric and autonomous cars is pushing auto manufacturers to work together as much as possible - such was the justification given by Fiat-Chrysler and Renault for their own recent announcement to team up, although as of today it appears that deal has fallen through.
"The transition to ACES [Autonomous, Connected, Electric, Shared] represents the greatest technological shift in the automotive industry in a generation". The pace of change and consumer interest in electrified. The agreement will enable both companies to take advantage of efficiencies arising from shared research and development and production planning as well as economies of scale from joint procurement across the supply chain, JLR said in an official statement.
BMW has not yet disclosed where it will build its EDUs, but there has been widespread reports that BMW is expanding its manufacturing base in Hams Hall, in the Midlands, which would mean it was in close proximity to JLR's facility.