MILAN: Fiat Chrysler and Engie EPS, a division of French utility Engie that focuses on energy storage systems and microgrids, plan to set up a joint venture to boost electric mobility, the two companies said on Thursday.

Fiat Chrysler's Italian division and Engie EPS, which is also based in Italy, have entered into a memorandum of understanding aimed at setting up the joint venture in the first quarter of 2021, they said in a statement.

Shares in Engie EPS, which is being advised by Lazard on the deal, were trading 13% higher in Paris at 1155 GMT following the announcement.

The new venture will offer a full range of products and solutions, including residential, business and public charging infrastructure as well as green energy packages for electric vehicle customers across Europe, they said.

Fiat Chrysler (FCA) launched the electric 500 small car and several Fiat, Jeep and Maserati hybrid models this year in a bid to catch up with rivals in the race for green mobility.

In its five-year plan running to the end of 2022, FCA pledged to invest 9 billion euros ($11 billion) in electrification out of a total of 45 billion euros, and roll out about 30 electrified models, either fully electric or hybrid.

Last year, the Italian-American carmaker signed an agreement with Engie and Italian utility Enel to help offer customers charging points for its electric vehicles (EV).

"The envisioned joint venture would allow an even higher commitment from both parties to expand the scope of the existing cooperation and further develop innovative products and services to enable and support a smooth shift to electric mobility in Europe," FCA Chief Executive Mike Manley said.

Final deals are expected to be signed this year.