In the past, the university has conducted several studies on electric vehicles, yet those were mostly based on theoretical measurements. The agreement foresees, however, that students and professors will have access to the company's products to do practical research, paving the way for launching innovative electric car related solutions and new products.

"This project gives our researchers a unique opportunity to explore and further develop smart energy solutions for the whole world," said Andres Keevallik, rector of the university, upon signing the agreement.

The nation’s cooperation with Mitsubishi started in March last year after the state had purchased 500 electric cars in exchange for carbon credits from the company. Part of the deal also includes setting up a nationwide electric vehicle charging network this year, expected to be completed by fall.

The state is also subsidizing the first 500 buyers of new fully electric cars with 18,000 euros per purchase. This project, due to end in November 2012, has so far attracted around 20 applicants.

In October the Cabinet also signed a framework agreement with the Mitsubishi Corporation for cooperation on projects in Estonia aimed at decreasing air pollution and minimizing energy consumption.

 Ingrid Teesalu