MILAN (Reuters) – CNH Industrial, (NYSE:), announced on Wednesday that it entered into a multiyear, exclusive license agreement with Monarch Tractor (a U.S. company that focuses on fully-electric and autonomous tractors) for electrification technologies.

It is the latest step by the Italian American vehicle manufacturer to promote its agriculture businesses and to prepare for spin-off of its low-margin bus, truck, engine, and bus operations.

CNH Industrial owns a small stake in Monarch Tractor in Silicon Valley.

Scott Wine, Chief Executive of Monarch said that he is confident the new Monarch pathways will quickly strengthen our position as a competitive precision farmer.

Financial details were not provided.

CNH Industrial, which is the second-largest agricultural equipment manufacturer in the world (NYSE:), was acquired by Raven Industries for $2.1 billion to boost its precision agriculture operations and autonomous operation.

CNH Industrial released a statement saying that agreement was made based on the introduction of low horsepower tractor-powered modular electrification platforms. These will then be applied to multiple product categories over the next few years.

CNH Industrial said that this agreement further supports its ongoing commitment to reduce carbon emissions in agriculture by using alternative propulsion systems.

CNH Industrial can use this partnership to improve its electrification capabilities, and to create new electric platforms faster,” Martino de Ambroggi (Equita analyst) said in an email. More details about the agreement were to be expected.

CNH Industrial is expected to complete its plan for spin-off and separate listing under Iveco Group. The truck and bus unit will be named along with the FPT engine division.

CNH will continue to be a construction equipment company after it is spun-off. Its control lies with Exor (OTC):, the holding company controlled by the Agnelli family of Italy.