National Electric Vehicle Sweden AB (NEVS), the Chinese-backed company born from the remnants of bankrupt Swedish automaker Saab, is investing 150 million euros ($171 million) in a venture with Swedish super car brand Koenigsegg, in a move that could see them develop new electric models.

The strategic partnership will enable the development of parallel vehicle models "in slightly higher volumes with emphasis on electrification, as well as strengthening growth opportunities in the hyper car segment," Koenigsegg said.

With the capital injection of EUR 150 million, NEVS is taking a 20 percent minority stake in Koenigsegg’s parent company.

Additionally, the parties are forming a joint venture to expand into new market segments where NEVS AB is contributing USD 150 million in starting capital for a 65 percent stake and Koenigsegg obtains 35 percent by contributing primarily with intellectual property, technology licenses, and product design.

Through NEVS production facilities in Trollhättan, Koenigsegg will access additional capabilities as well as benefiting from the extensive automotive knowledge in the region. Alongside NEVS capacity for production in Trollhättan and China, NEVS through its majority owner Evergrande, has a wide distribution platform and channels through ownership in one of China’s largest car retailers.

Evergrande Health’s $930 million cash infusion into NEVS, announced this month, was seen as a second lifeline, giving it funds to develop costly electric vehicles and access to new auto technologies, where Evergrande is expanding.

The Chinese firm is a unit of property developer China Evergrande Group and is a former investor in U.S. electric vehicle developer Faraday Future.

“Koenigsegg is breaking new ground, capitalising on our unique technology, performance track record and market position to explore and develop new products. This partnership will create the best conditions for Koenigsegg to accelerate growth in the hyper car market, as well as enabling us to break ground into an untapped market segment together with NEVS. We very much look forward to working together with NEVS to develop products that ensure a sustainable future”, says Christian von Koenigsegg, Founder and CEO of Koenigsegg.

The deal deepens China’s exposure to Swedish automakers, with Geely owning Volvo Cars and the largest investor in truckmaker AB Volvo, and another Chinese investor having created NEVS in 2012 after buying the core assets and IP rights of Saab Automobile following its demise.

In the ultra-luxury sports car category where Koenigsegg operates, however, Ferrari has said it may introduce an electric version after 2022, while Volkswagen’s Lamborghini has expressed willingness to explore the area.