With Tesla’s upcoming Model 3 unleashing an enthusiasm for electric cars, attention has turned to the market opportunity in electric car engines. German engineering giant Siemens and French auto supplier Valeo recently announced that they decided to team up for making engines for electric and hybrid cars.

The convergence of Valeo’s high-voltage power electronics business and E-Car Powertrain Systems Business of Siemens will have its headquarters in Germany’s Erlangen.

According to a joint statement, the production facilities will be spread in France, Norway, Poland, Hungary and China by late 2016. The venture will offer high-voltage electric motors, range extenders and chargers in electrified cars and light commercial vehicles, reports Reuters.

Valeo chief executive Jacques Aschenbroich said: “With expertise offered by Siemens, a leader in power electronics and electric motor products, Valeo would maintain its technological lead by offering a comprehensive line-up of technologies ranging from micro-hybrid to all-electric solutions.”

His views were endorsed by Siemens managing board member Klaus Helmrich, who said: “The Valeo-Siemens joint venture is yet another example of forming a true Europe-based company.”

Meanwhile, Netherlands has mooted a proposal to ban the sale of new petrol and diesel cars from 2025. It can be a trend setter for other countries.

The motion passed in the lower house of the Netherlands’ parliament has to be ratified by the Dutch senate, reports The Guardian. 

It was proposed by the Labour Party. Though it allows existing cars to stay in use, it will strive to prevent” the sales of any future ones. This is for making Dutch roads electrified over the next decade.

Meanwhile, a report in the Economist said, the price of the lithium-ion battery will be a determiner in the growth of electrical cars. Noting that an electric car capable of travelling 75 miles needs to have around 24kWh of capacity, it said the price of batteries have to come down to less than $200 per kWh before electric cars can go mainstream.