Stellantis, a global automaker that owns Jeep and Chrysler, is partnering with a Chinese startup in its electric vehicle race.

Dutch group announced Thursday it will acquire a 20% stake in Hangzhou-based EV maker Leapmotor for about €1.5 billion (nearly $1.6 billion).

Stellantis will receive exclusive rights to produce, export, and sell the Chinese brand’s vehicles outside Greater China as part of a joint venture. Starting with the European market is the plan.

In the joint venture, Stellantis will hold a 51% stake, while Leapmotor will hold a 49% stake. During the second half of 2024, the new business expects to start shipping.

Through the agreement, Stellantis will be able to leverage the startup’s “cost-efficient EV ecosystem” to achieve its own fleet goals, such as offering more than 75 fully electric models by 2030.

Since Chinese brands can produce EVs at rapid speeds at a lower cost, they are gaining more attention from established automakers.

In addition to buying a 5% stake in Chinese EV maker Xpeng, Volkswagen announced a strategic partnership with the company.

According to Reuters, Mercedes was negotiating to invest in Chinese EV manufacturer Nio in exchange for the startup’s R&D and technology.