WASHINGTON, Sept 12 (Reuters) - General Motors ( GM )

and Hyundai Motor Co ( HYMTF ) said on Thursday they have

agreed to explore future collaboration across key strategic

areas including potential joint vehicle development, supply

chain issues and clean-energy technologies.

The U.S. and Korean automakers said they had signed a

non-binding memorandum of understanding to consider ways to

"leverage their complementary scale and strengths to reduce

costs and bring a wider range of vehicles and technologies to

customers faster."

Automakers face tens of billions of dollars in capital costs

to build new electric vehicles and batteries, secure supply

chains and develop advanced technologies like self-driving

vehicles as they face stringent vehicle emissions regulations

and heavy competition around the globe.

Potential collaboration projects "center on co-development

and production of passenger and commercial vehicles, internal

combustion engines and clean-energy, electric and hydrogen

technologies," GM and Hyundai said.

Both companies have announced aggressive plans to ramp up

electric vehicle production.

The two companies will also review potential combined

sourcing in areas like battery raw materials and steel and plan

to immediately begin assessing "opportunities and progression

towards binding agreements."

The framework agreement was signed by Hyundai Motor Group

Executive Chair Euisun Chung and GM Chair and CEO Mary Barra.

"Our goal is to unlock the scale and creativity of both

companies to deliver even more competitive vehicles to customers

faster and more efficiently," said Barra.

Hyundai Motor ( HYMTF ) includes flagship Hyundai and its affiliate

Kia, which together are the world's number three

automaker by sales, while GM is the largest U.S. automaker.

The automakers will "evaluate opportunities to enhance

competitiveness in key markets and vehicle segments, as well as

drive cost efficiencies and provide stronger customer value

through our combined expertise and innovative technologies,"

Chung said.

In October 2023, Honda Motor ( HMC ) and GM scrapped a plan

to jointly develop affordable electric vehicles, just a year

after they agreed to work together in a $5 billion effort to try

to beat Tesla in sales.

The two car companies agreed in April 2022 to develop a

series of lower-priced EVs based on a new joint platform,

producing potentially millions of cars from 2027 onwards.