In a joint innovation effort, NEVS and Iconiq Motors will develop future vehicles under each brand, the pair announced.
Iconiq's vehicles will be manufactured in the NEVS joint venture manufacturing facility in Tianjin, China, while NEVS will use both its production facilities, in Tianjin and Trollhättan.
"Both companies will cooperate on the development of shared technology for their future vehicles to benefit from the Swedish expertise, to maximise industrial synergies," a statement said.
The cooperation was agreed during the recent Shanghai show lately as Iconiq Motors unveiled its e-MPV Model Seven. Production will start in 2019.
NEVS will develop an E-segment EV commuter vehicle, produced from 2020.
"I am happy to start this partnership with Iconiq [which] shares the NEVS vision of sustainable mobility. Both companies will contribute to a better joint result," said Mattias Bergman, president of NEVS.
Both are members of the Tianjin THT EV 'eco-system'.
"NEVS and Iconiq Motors will strive to benefit from their respective strengths to bring high quality electric vehicles to the Chinese market and the rest of the world," they said.
The manufacturing plant in Tianjin is currently under construction. It was granted the ninth EV Manufacturing licence by the Chinese government in January 2017.