SHANGHAI - CHINESE automaker Dongfeng Motor Corp and a Dutch-based company plan to cooperate in developing and making electric cars, the companies said on Friday, as China pushes to expand use of alternative energy vehicles.

Detroit Electric Holdings, a startup company that owns the electric drive technology to be used in the cars, plans to license it to Dongfeng for testing and use in its electric vehicles, Albert Lam, Detroit Electric's chairman and CEO, said.

The two companies are also discussing forming a joint venture to manufacture, assemble, produce and supply the Detroit Electric's electric drive technology to the Dongfeng Group and other vehicle manufacturers.

Financial details of the tie-up were not announced. Nor was there any word on when they hoped to produce the vehicles.

Mr Lam said the deal would be similar in scope to Detroit Electric's agreement with Malaysian automaker Proton for producing electric vehicles for export.

If it succeeds, Detroit Electric would be among the first to mass-produce an electric car driven purely by a noiseless battery-powered motor, unlike current hybrid engines that combine gasoline engines and electric motors.

Detroit Electric says its electric drive systems will enable extended-range models of the cars it is used in travel up to 325km on a single charge.

Car makers must innovate themselves out of their dependence on gasoline and diesel, and China seems committed to making the switch, he said.

The company is among many Chinese manufacturers moving quickly to develop electric vehicles for the fast-growing local market, with the encouragement of authorities who are keen to reduce automobile emissions and limit the country's growing reliance on imported oil.

Purchasing equipment to make the cars would typically cost about US$15 million (S$21.9 million) to US$20 million, Mr Lam said.

Detroit Electric's deal with Proton calls for the Malaysian automaker to use excess capacity to make zero-emission electric sedans, initially targeted at the European and US markets. -- AP