Light technologies (NASDAQ: LAZR) forged a manufacturing alliance with a major company across the Pacific Ocean. The lidar specialist announced Thursday that it has entered into a “strategic partnership” with SAIC Motor Corporation, the largest Chinese automaker.

Luminar’s technology will be used in the next models of SAIC’s R brand, which are electric vehicles (EVs) with a relatively high level of automation. The American firm’s Iris lidar will be integrated into the roofline of the cars, a placement that Luminar says provides it with the optimal vantage point.

Lidar, which stands for “light sensing and telemetry,” uses pulsed lasers to provide rapid range measurements – a feature that allows the car to “see” and thus supports some autonomous functionality. With the explosion in the notoriety and popularity of next-generation vehicle inventory, the inventory of the leader in lidar, Luminar, has grown significantly.

Luminar has strongly hinted that the SAIC deal will be a big driver contributing to its own growth. “[SAIC is] clearly the burden of setting a new technology standard for China and the industry as a whole, ”said company CEO Austin Russell.

“Luminar’s hardware and software are uniquely capable of making SAIC’s vision a reality at the mass production scale,” he added.

SAIC is expected to begin serial production of R Brand next year. Luminar did not provide any estimate on the impact of the SAIC deal on its fundamentals. The American company plans to open an office in Shanghai alongside its Chinese partner.

While it remains to be seen how the Luminar / SAIC partnership will play out, it is impressive that Luminar has progressed enough to become a crucial manufacturing partner for the sprawling Asian company.

Meanwhile, Luminar was due to release its fourth quarter and full year 2020 results after market hours on Thursday.