Mitsubishi announces the news a few hours ago, saying the study will be conducted over several months, with the final aim being the development of electric powertrain for small urban vehicles.
With Toyota, Honda and GM leading the Hybrid race, Mitsubishi and PSA felt that cooperation on electric vehicle development and production would be mutually beneficial.
This is not the first time the Japanese giant and PSA have dealt with each other, only last week the companies opened a joint Russian factory, in Kaluga (180 km south west of Moscow) that will manufacture vehicles for both brands.
PSA wants to continue its work on electric cars and produce more green cars as part of its plan for 2010-2015. Although not a well known fact, PSA Peugeot Citroen is currently the largest global manufacturer of electric vehicles, having sold over 10,000 units.
PSA's expertise will be joined by that of Mitsubishi who plans to become one of the leading car manufactures of electric vehicles. The company has so confirmed the i MiEV electric vehicle for introduction to the Japanese market in 2009 with possibility of it going to Europe and the U.S.
PSA will also benefit from Mitsubishi's Lithium Ion battery venture with GS Yuasa, which will supply large capacity and high performance lithium ion batteries for the i MiEV.