The two car giants are working on state of the art technology for electric and plug-in hybrid motors.
The aim of the new system, known as EDUs, is to reduce the cost of such automobiles.
Although there is no solid date for when the tech will be completed, it has been reported that it could be in use as soon as three to four years times, according to AutoCar.co.uk.
BMW board member for R&D, Klaus Fröhlich, commented: "The automotive industry is undergoing a steep transformation. We see collaboration as a key for success, also in the field of electrification. With Jaguar Land Rover, we found a partner whose requirements for the future generation of electric drive units significantly match ours. Together, we have the opportunity to cater more effectively for customer needs by shortening development time and bringing vehicles and state-of-the-art technologies more rapidly to market."
Whilst Nick Rogers, Jaguar Land Rover's engineering director added: "We've proven we can build world beating electric cars but now we need to scale the technology to support the next generation of Jaguar and Land Rover products. It was clear from discussions with BMW Group that both companies' requirements for next generation EDUs to support this transition have significant overlap making for a mutually beneficial collaboration."