Luxury electric car maker Tesla has announced a new partnership with Dalhousie University in Canada, with a view to developing improved lithium-ion battery technology.

The agreement was signed on June 17 by Tesla's chief technical officer, JB Straubel, and Dr. Jeff Dahn of Dalhousie.

It is the first time Telsa has teamed up with a Canadian university.

Martha Crago, vice-president of research at Dalhousie, said: "Dalhousie University is a national and international leader in advanced materials and clean technology research.

"Jeff Dahn is developing Li-ion batteries that improve lifetime, increase energy density and reduce cost. This collaboration with Tesla is a natural fit and we look forward to working together."

Tesla, owned by US billionaire Elon Musk, aims to make electric car technology affordable to as many people as possible. But the key obstacle to this objective is the cost and lack of battery longevity.

It is hoped that cheaper, longer-lasting batteries, coupled with increased car production – to the tune of hundreds of thousands per year – will bring down the cost of Tesla vehicles.

While developing better battery technology is no doubt an urgent task for Tesla, the research project with Dalhousie University won't commence for one year.

Meanwhile, Dalhousie's Dr Dahn will continue his work as the Industrial Research Chair in Materials for Advanced Batteries.

Tesla built the first fully electric sports car – the Roadster – in 2008. This was followed by the Model S. The X and 3 models are to be launched next, the latter with a price tag of $35,000 (£22,500) before any government incentives.

By Craig Hindmarsh