French automaker Renault-Nissan signed a preliminary agreement Monday to supply electrically powered vehicles to the Israeli market starting in 2011, the parties to the deal said Monday.
The accord was signed in Jerusalem by Renault-Nissan and the Israeli group Project Better Place, established by Israeli investor Shai Agassi.
Renault will provide the vehicles and Project Better Place will build a network of battery recharging stations throughout Israel, the two companies said.
The Israeli government is to support the effort by offering tax incentives to customers.
The companies said the vehicles would be "100 percent electric."
"The objective of zero (CO2) emissions will be achieved," a joint statement said.
It added that customers would buy and own their vehicles and would subscribe to monthly energy supply, including use of the battery, on the basis of distance driven.
The companies said the car would offer a "driving performance" similar to a 1.6-liter gasoline engine and would carrry a cost "significantly lower than that of a fuel-based car over the life of the vehicle.