It’s no secret that Toyota recently made a healthy investment in Tesla, and while some observers wondered why one of the world’s largest carmakers would waste its time with such a small startup, the truth is that the Japanese company has plenty to learn from the EV maker.

Not too long ago, Toyota was making noise about dipping its toes into the electric vehicle game by showing off a rash of electrified city-car concepts. But the world hasn’t heard much about the company’s efforts since then. Our guess is that Toyota has yet to come up with the magic battery recipe it needs to provide the range that buyers expect from a viable EV.

While Tesla hasn’t exactly been moving units by the bucket load, it does seem to have a pretty good handle on battery technology. Its all-electric Roadster reportedly packs a 250-mile range, far better than any other EV on the road. Toyota is probably hoping to benefit from the smaller company’s knowledge in the area to help refine its upcoming electric products.

If true, it wouldn’t be the first time that Tesla has helped a larger carmaker in its pursuit of EV glory. The recently unveiled Smart fortwo Electric Drive stores its power in a Tesla-developed battery pack, prized for its high capacity and relatively small size. While Smart says that the production version of its EV will boast a complete Daimler-built power source, there’s no denying the company’s dependence on Tesla at the moment.

Chances are we will see a similar pattern with Toyota. The first, leasable EV city cars will wear Tesla badges on their battery packs, giving Toyota the time it needs to develop a workable solution of its own. The two companies expect to begin testing their collaboration by the end of the year.