German automaker Daimler has signed a joint development agreement with Toray, a leading carbon fiber manufacturer, to produce car parts made of carbon fiber reinforced plastics (CFRP).

Under the agreement, Toray will study how to mass-produce CFRP and handle the design and molding processes of the new materials. Daimler, on the other hand, will be responsible for developing joining technologies, the two companies said in a statement.

Carbon fiber has long been used in race cars because it is lightweight and strong. However, the material is very expensive compared to the commonly used car materials like steel and aluminum.

Daimler earlier said the use of CFRP will help them achieve their goal to reduce the weight of its Mercedes-Benz series by as much as 10 percent to improve the vehicles’ fuel efficiency rating and reduce exhaust gas emissions.

The announcement comes two weeks after its competitor BMW announced in early April that it is making a move toward carbon fiber. BMW signed an agreement with GL Automotive Carbon Fibers to open a carbon-fiber production facility in Moses Lake, Washington, for its MegaCity line of electric vehicles, which will be released in 2013.